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Online purchase tax only applicable to imported goods under RM500

17 Dec 2023, 6:14 AM
Online purchase tax only applicable to imported goods under RM500

KUALA LUMPUR, Dec 17 — The 10 per cent sales tax on online purchases only applies to imported goods valued under RM500, said Communications Minister Fahmi Fadzil.

This is to enhance the competitiveness of local products, which are not affected by the tax when bought online.

"It only applies to products imported from overseas and sold online in Malaysia. Products produced in the country are not affected. So, I hope this will clear up misunderstandings among the public about the tax.

"We can refer to the official website of the Customs Department for more detailed information, and from time to time, we will carry out monitoring to make sure the people, especially sellers and buyers who carry out online transactions, really understand (about the tax)," he said.

Fahmi, the Unity Government spokesperson, was speaking at a press conference after launching the Reuse, Educate, Nurture, and Empower with Waste (R.E.N.E.W) programme at Dataran Sri Angkasa Jaya today.

Yesterday, the Royal Malaysian Customs Department announced that Malaysia will start charging a 10 per cent sales tax on low value goods (LVG) sold online from January 1, 2024.

On the R.E.N.E.W programme organised by the Institute of Continuing Education Professional Studies (iCEPS) of Universiti Teknologi MARA (UiTM), the Lembah Pantai MP said it is a good initiative towards preserving the environment.

Over 100 kg of used cooking oil wwas collected yesterday, reflecting the increased awareness of the local community around Lembah Pantai on the use of cooking oil management.

— Bernama

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