THE government has backed down from imposing Goods and Services Tax on 60 additional food items ahead of an impending general election.
According to the statement issued today, the Customs Department said the Finance Ministry had ordered the instruction to be cancelled following wide media coverage of an extension of GST to include food items.
The Star Online had earlier reported that 60 additional food items that include eel, swordfish, imported fruits, certain vegetables, tea, coffee, bee hoon, potatoes and spinach.
The English daily also reported Customs director-general Subromaniam Tholasy as saying that the tax was only for a few items “not consumed by the masses”.
The government gazette referenced P.U. (A) 162/2017 was issued on June 6 and said that the amended Goods and Services Tax would come into operation on July 1, 2017.
The minister’s order was signed by Second Finance Minister Johari Abdul Ghani.
The Government introduced GST in April 2015 in the form of a 6% tax on goods and services.