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10% Sales Tax to be Imposed on Online Goods Below RM500, Effective January 1st, 2024

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Source: 123RF & New Straits Times

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Fellow Malaysians, more taxes are coming your way, and this is for those who frequently shop online.

A 10% sales tax will be imposed on online sales of goods costing below RM500, effective January 1, 2024. The tax, also known as low-value goods, was first mentioned in the Parliament during the tabling of Budget 2020 and will apply to goods bought online and delivered to Malaysia by vendors who are registered with the finance ministry.

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This tax was initially slated to be enforced in April this year before the PM and Minister of Finance, Datuk Seri Anwar Ibrahim, signed off the Federal Government Gazette.

The tax will apply to all goods sold online except cigarettes, e-cigarettes, vaping products, smoking pipes, tobacco products, and liquors, as reported by The Edge Malaysia.

It also does not include any other taxes, duties, or fees, as revealed by a series of questions and answers released by the Royal Malaysian Customs Department.

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The organisation added that countries such as Australia, Switzerland, New Zealand, Norway, and the United Kingdom have imposed a similar sales tax on low-value goods.

 

What do you think of this upcoming tax?

 

Also read: Your Account Will Be Suspended if You’re Caught Redeeming RM100 eMadani Credit for Cash, Says MoF

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Source: 123RF

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