The list of Goods and Services Tax (GST) exempt or zero-rated items is crucial to ensure that the soon-to-be-implemented GST is not regressive and to minimise the impact of tax unto the lower and middle income groups.  

As such, the MCA Economic Consultative Committee has recommended to the government that in view of subsidy rationalisation, basic necessities like petrol and diesel should be zero-rated or subsidised to nullify the effect of GST.

Recently, we have received feedback from the fruits association that fruits might also be levied with GST although fruits are important for health and for a balanced diet. Fruits are an essential staple diet, which is similar to vegetables.  

In addition, to track and to have full records for GST to be applicable for the fruits industry would be challenging. Imagine your fruit seller having to issue receipts for every transaction. Hence, we would also like to propose that the government to include fruits as GST-exempt or zero-rated item.

Since GST will be implemented only in April 2015, there is still time for the public and business sector to provide feedback for items that are crucial to be included in the zero-rated or exempt list.  

The government’s announcement that items are still being reviewed and the list has not been finalised, indicates the willingness of the government to consider items to be included in the exemption or zero rated to reduce the impact of GST.

Therefore, we hope that the people will take the initiative in doing so to help the government prepare for the list by attending briefings and also using the Royal Customs and Excise Department’s website (www.customs.gov.my) to provide suggestions on the implementation of GST.


CHUA TEE YONG is MCA Economic Consultative Committee chairperson, MCA vice-president, and member of Parliament for Labis.