PUTRAJAYA: The zero-rate sales tax exemption on inputs from registered manufacturers for the animal feed, fertiliser and pesticide industries has been described as a 'windfall' for the agriculture sector.
The Ministry of Agriculture and Food Security (KPKM) has informed that the initiative is highly anticipated by industry players as it can reduce production costs, thus ensuring that agricultural product prices remain affordable to support the country's food security.
According to KPKM, the 2026 New Year's Address delivered by Prime Minister Datuk Seri Anwar Ibrahim is fully supported, particularly the emphasis on the food security agenda which is seen as in line with efforts to strengthen governance, improve service delivery efficiency and preserve the well-being of the people.
KPKM also welcomes the MADANI Government's commitment to continue implementing 5,000 MADANI Agro Sales (JAM) this year.
"This programme has proven effective in helping to ease the cost of living by making it easier for the people to obtain supplies of fresh produce and basic necessities at lower prices than the market," according to a KPKM statement.
The Ministry of Agriculture and Rural Development continues its commitment to implementing various strategic initiatives to strengthen the country's food security comprehensively, in line with the ministry's policies and directions.
In his New Year's message for 2026 yesterday, the Prime Minister announced a sales tax exemption on critical raw materials or inputs used by registered manufacturers, especially for the production of goods related to the livestock and agriculture sectors, as a measure to control the prices of basic necessities for the people.
The exemption covers animal feed, fertilizers and pesticides, in line with efforts to ensure the stability of production costs and the country's food supply chain.
