The decision is made after getting feedback from the Finance Ministry
KUALA LUMPUR: Customs Department director-general Subromaniam Tholasy today said that the proposal to charge goods and services tax (GST) on 60 types of food items starting July 1 will not be implemented.
He said that GST would not be imposed on the 60 food items as reported previously after discussions with the Finance Ministry (MOF).
“We checked with MOF for feedback and have decided to cancel the directive,” said Subromaniam.
He further urged all parties to take note of the development.
Yesterday Subromaniam was reported saying to China Press that the unpopular tax will be imposed on “few items not consumed by the masses” starting July 1.
The report stated that the food items include seafood such as eel, swordfish, vegetables such as potato, long beans, nuts, spinach, sweet corn, fruits such as avocado, fig, grapes, nectarines, cherry, berry and other items such as tea, coffee, spices, noodles and coconut oil.
The government introduced GST in April 2015 in the form of a 6% tax on goods and services.
The imposition of the GST on these 60 food items would have caused more economic hardship for the people who have already been burdened by the GST and rising cost of living.