The decision was made after the issue was referred to the finance ministry.
PETALING JAYA: The Customs Department has cancelled the order which would have seen over 60 food items, including staples such as noodles, potatoes and spinach, subject to the goods and services tax (GST).
In a statement, the department’s director-general Subromaniam Tholasy said the decision was made after it had referred the matter to the finance ministry.
Earlier, China Press reported that some 60 food items including seafood, vegetables, fruits, tea, coffee, spices and noodles would be subject to the GST beginning July 1.
Other items that would have been subject to the 6% GST included bihun, kuey teow, laksa mee, coconut oil, eel and swordfish, as well as imported fruits like avocados, figs, grapes, nectarines, cherries and berries.
Under the category of vegetables, potatoes, long beans, peas, spinach and sweet corn would reportedly be taken off the GST zero-rated list.
The government introduced the GST in April 2015 in the form of a 6% tax on goods and services. -FMT
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