No new items to be subjected to GST

PETALING JAYA: No additional food items will be subjected to the Goods and Services Tax (GST) come July 1, as initially reported.
Customs Department director-general Datuk Subromaniam Tholasy said the decision to cancel the order, which would have seen over 60 food items subjected to the tax, was made after obtaining feedback from the Finance Ministry.
"The local media had reported that some zero-rated food items would be imposed the 6% GST beginning July 1, referring to the GST (Zero-Rated Supply) (Amendment) (No.2) Order 2017 that was gazetted on June 6.
"The Royal Malaysian Customs Department had referred the matter to the Finance Ministry for feedback and has decided that the order be cancelled," he said in a statement today.
Yesterday, several reports claimed that more than 60 food items would be taken off the zero-rated list and be subjected to the tax, including certain vegetables, fruits and seafood.
These included eel, sword fish, frozen vegetables, margarine, and imported fruits like avocado, apricot, grape, cherry and peach.
The reports led social media into a frenzy, with netizens questioning the need to include more essential food items in the GST list, especially during the Hari Raya festive season.
Others were infuriated that this would be implemented on the same day as the Tourism Tax.
GST, which was introduced on April 1, 2015, is expected to collect RM42 billion this year, as compared to RM41 billion in 2016.