BY NORHAYATI UMOR
SHAH ALAM, JUNE 19: The Royal Malaysian Customs Department (JDKM) has cancelled the goods and service tax (GST) on over 60 food items which was earlier expected to take effect this July 1.
Its Director, Datuk Subromaniam Tholasy said, the matter refers to GST Tax Order (Zero-rated Supply) amendment (No 2) 2017 which was gazetted on June 6, this year.
He said, the implication from the order will cause more than 60 food such as eel, swordfish, corn, frozen vegetables and several types of imported fruits and margarine to be subjected to the tax.
“JDTM referred this matter to the Finance Ministry for feedback and made the decision to cancel (the tax),” he said in a statement.
Earlier, Malaysians were shocked by media reports on the proposed GST implementation on over 60 food items, starting next month.
Among the items that will be taxed include eel, swordfish, several types of imported fruits such as avocadoes, figs, grapes, nectarines, cherries and berries.
Meanwhile, vegetables such as potatoes, beans, spinach, long beans and sweet corns were removed from the zero-rated GST item list.
If the plan is implemented, other items like bihun, kuetiau, laksa noodles and coconut oil will also be taxed by 6%.
Tholasy said, JDKM asked for everybody’s cooperation to take note on the cancellation.
The complete zero-rated goods and services list is available on gst.customs.gov.my or www.federalgazette.agc.gov.my.
