With the popularity of online shopping, people can purchase not only local goods but also overseas goods through online shopping platforms. Taobao is one of the most popular overseas online shopping platforms used by Malaysians.
In last year’s Budget 2022 proposal, Finance Minister Tunku Zafrul said that the government will impose a tax of up to RM500 on goods flown into Malaysia from overseas from January 2023. This means that those who choose to shop by air on Taobao will be taxed from 2023 onwards.
Currently, people are not required to pay sales tax on overseas purchases as long as the purchase does not exceed RM500. However, this convenience will end in 2023, when people will start paying the tax.
This measure was implemented to give local manufacturers and suppliers a fair deal as currently locally made goods are subject to sales tax while goods flown in from overseas can avoid the tax.
