Govt: No SST on local FFB sales
KUALA LUMPUR: The Customs Department has clarified that oil palm planters selling their fresh fruit bunches (FFB) to millers are not subjected to the five per cent sales tax as this only covered imported FFB.
Its director-general Datuk Seri Subromaniam Tholasy said previously, the six per cent Goods and Services Tax (GST) was imposed on FFB sales, including those imported.
“The Customs would like to clarify that under Section 8 of the Sales Tax Act 2018, the sales tax is charged and levied only on taxable goods manufactured in Malaysia by a registered manufacturer, or taxable goods imported into Malaysia.
“FFB producers and vendors are not subject to the Sales and Services Tax Act of 2018, as they do not fall under the category of manufacturers,” he said in a statement yesterday.
Subromaniam was responding to a news report quoting Malaysian Palm Oil Association chief executive officer and Felcra chairman Datuk Nageeb Wahab who appealed to the government to reconsider and review the five per cent sales tax imposed on FFB supplied by oil palm planters.
Malaysia started imposing a tax of five and 10 per cent on the sale of goods, and a six per cent levy on services from September 1.
SST is currently imposed on taxable goods manufactured by an individual or company with an annual turnover exceeding RM500,000 and on taxable goods imported into Malaysia.