Bad News! The government will levy 10% sales tax on online purchases of low-priced goods from January 2024 onwards.
It is understood that the 10% sales tax on online purchases of low-priced goods will be implemented from January 1, 2024, after a number of delays.
The Lower House of Parliament passed the third reading of the Sales Tax Amendment Bill 2022 in August last year, which will see a 10% tax rate on purchases of goods priced below RM500 on overseas e-commerce platforms. These goods will only be subject to a flat rate of 10% and will no longer be subject to import duty.
This measure applies to goods that are shipped to Malaysia by air on overseas e-commerce platforms with a price not exceeding RM500, as well as to overseas e-commerce companies with annual sales of more than RM500,000 per year. The objective of this measure is to treat local businesses more fairly. The implementation of this measure will increase the government’s tax revenue by RM200 million annually.
For those who like to shop online, this is a bad news, you will have to pay more when you shop online. However, it is good news for local merchants, as it will make people choose local products.
