Fahmi: 10% Sales Tax on Online Purchases Only For Imported Goods, Meant to Benefit Local Products

Previously, we reported that the government will be imposing a 10% sales tax on online purchases below RM500 that will come into effect on January 1, 2024. Now, Communications Minister Fahmi Fadzil has further clarified the upcoming tax, saying that it will only apply to imported goods.

Taking to his official X account, Fahmi assured that products produced within Malaysia won’t be affected by the tax. He asserted, “This (the tax) only applies to imported products. Local products are exempted from the tax.”

Furthermore, the Communications Minister was quoted by BERNAMA as saying that the public can refer to the official website of the Customs Department for more detailed information.

He added that from time to time, his ministry will monitor the tax to make sure the people, especially sellers and buyers who carry out online transactions, understand about it.

Fahmi stressed that the tax was meant to enhance the competitiveness of local products, which won’t be affected by the tax when bought online.

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On his X account, Fahmi also reposted a post by X user @Iamkanahraf, which revealed that the flat 10% tax was passed in 2022 before the current Unity Government came into power.

So, what do you guys think of the tax? Share your thoughts with us in the comments.

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