Sarawak Fruit Importers Fear New Tax Will Squeeze Profits

KUCHING, SARAWAK – The implementation of a new 5% sales tax on imported fruits, effective July 1st, 2025, has sparked concern among fruit importers in Kuching. Many business owners fear the tax will significantly impact their profits. "The tax increase is a huge blow," said Chin Chey Min, owner of T.S. Chop. "The economy is already challenging, and this just makes things harder." Cynthia Amol, another fruit seller, echoed these sentiments, stating, "It's unfair. I don't grow my own fruit; I buy it from others. This increase forces me to raise prices." Dr. Mohd Azzani Am Abdul Rashid, Chief Economist of Bank Muamalat Malaysia Berhad, offered a more nuanced perspective, suggesting that the tax should be viewed as part of a broader economic strategy. He hinted at potential government support for local fruit producers to offset the impact of increased import costs. While the tax will undoubtedly impact importers, the government's strategy may ultimately benefit local producers and the overall economy.