KUALA LUMPUR, Jan 7 — The Ministry of Agriculture and Food Security (KPKM) has welcomed the government’s decision to zero-rate the sales tax on agricultural inputs like animal feed, fertiliser, and insecticide as a “windfall” for the agriculture sector.
Prime Minister Anwar Ibrahim announced last Monday the sales tax exemption on inputs for registered manufacturers in the animal feed, fertiliser, and insecticide industries.
“This initiative has been highly anticipated by industry players as it has the potential to reduce production costs and, in turn, ensure that agricultural product prices remain affordable in support of national food security,” said KPKM in a statement yesterday.
“In addition, the Ministry also welcomes the Madani government’s commitment to continue the implementation of 5,000 Agro Madani Sales (Jam) this year.
“This programme has proven to be effective in helping to ease the cost of living by enabling the public to obtain supplies of fresh produce and basic necessities at prices lower than those in the market.”
Agriculture and Food Security Minister Mohamad Sabu told Parliament last month that Malaysia still imports a large portion of food needs due to limited farming land, ageing farmers’ workforce, high cost of food production, and cheaper imported meat than local meat.
