A GST banner is seen in a supermarket. Bernama Photo
KUALA LUMPUR: The Malaysian Royal Customs Department has announced that it will no longer be imposing the Goods and Services Tax (GST) on over 60 food items after referring to the Finance Ministry.
The announcement came less than a day after several news portals carried reports stating that the food items would have GST imposed on them from July 1 onwards.
“The implication of the GST (Zero-Rated Supply) (Amendment) (No. 2) Order 2017 would have subjected food items such as eel, swordfish, corn, frozen vegetables, imported fruits, figs, margarine and more to GST,” the statement read.
“After discussing the matter with the Finance Ministry, the Malaysian Royal Customs Department has made the decision to cancel the order.”
The government introduced the GST in April 2015 in the form of a six per cent tax on goods and services.
For the complete list of zero-rated goods and services, visit gst.customs.gov.my or www.federalgazette.agc.gov.my.