COMMUNICATIONS Minister Fahmi Fadzil today clarified on the X platform that the low-value goods tax (LVG) applies only to imported goods, contrary to a massive confusion that wants the tax to apply to all goods bought online.
Ini terpakai untuk barang yang diimport sahaja
Produk tempatan tak kena cukai ini https://t.co/HmANUyzeHk
— Fahmi Fadzil 🇲🇾 (@fahmi_fadzil) December 17, 2023
(This applies to imported goods only. Local products are not subjected to the tax.)
Fahmi commented on an Astro Awani link on the X platform that says the tax will apply to goods purchased online. The article headline omitted the source of the goods.
The unpopular move to tax online purchases below RM500 has been the subject of scrutiny in recent days.
This levy, detailed in the Royal Malaysian Customs Department’s recent guidelines, covers low-value items brought into the country via various means except for alcohol or smoking products. The tax applies to all online sellers, regardless of their location, selling LVG (goods priced below RM500) on digital platforms.
Implementation is scheduled for Jan 1, 2024, excluding LVG ordered before that date, even if delivered afterwards.
However, purchases made after Jan 1 will incur the tax. The 10% sales tax is specifically on the sales value of LVG, excluding additional fees like transportation or insurance.
Each LVG priced under RM500 will be subject to the 10% levy, irrespective of combined purchases, closing any loophole to surpass the tax threshold.
Following that, netizens are complaining that this will have some effects on their day-to-day lives. Twitter user Sharan Pretam Singh (Mrs) @PretamSharan stated:
Online health supplements for own consumption allowed RM500 and below by customs and no tax payable. Now I will be forced to pay this 10% tax. Please look into this, are there any exemptions allowed here. @rafiziramli
— Sharan Pretam Singh (Mrs) (@PretamSharan) December 17, 2023
However, some see the tax as a good initiative for local consumer goods, as it may get Malaysians to purchase local products instead of imported goods.
Baik berita diterima.Belilah barang buatan Malaysia.
Proudly Made in Malaysia
— phytopunk (@ori_phytopunk) December 17, 2023
(Good news like this should be accepted. Please purchase Malaysian-made products. Proudly Made in Malaysia.)
Regardless, there are plenty who are still confused about the definition of what will be taxed. – Dec 17, 2023
So does this mean beli the same stuff on Shopee but from local stock tak kena The LVG tax?
And what about imported toys? Imported small items like stationaries?
Will the distributor /importer get the taxation or the end buyer pun kena? Will we see any double taxation?
— Memeranglaut.bsky.social 🍥|🐙💀🎲| (@memeranglaut) December 17, 2023
Main photo credit: Bernama