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 A 10% sales tax will be imposed from Jan 1, on online goods costing below RM500

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narf03
post Dec 16 2023, 03:26 PM

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QUOTE(MR_alien @ Dec 16 2023, 03:23 PM)
we're paying it all at the website

the news did mention "delivered to Malaysia by vendors registered with the finance ministry"
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what if they didnt register ?

for example, i make a website and sell underwear, with payment gateway anybody on the planet can make transaction and pay me, once i collected the money, i ship out the item to their address, who cares its in israel or ukraine, i just ship, do i need to register to ukraine or israel gov for shipping things to their country ?
MR_alien
post Dec 16 2023, 03:27 PM

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QUOTE(narf03 @ Dec 16 2023, 03:26 PM)
what if they didnt register ?

for example, i make a website and sell underwear, with payment gateway anybody on the planet can make transaction and pay me, once i collected the money, i ship out the item to their address, who cares its in israel or ukraine, i just ship, do i need to register to ukraine or israel gov for shipping things to their country ?
*
taxed at customs i guess
narf03
post Dec 16 2023, 03:29 PM

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QUOTE(MR_alien @ Dec 16 2023, 03:27 PM)
taxed at customs i guess
*
thats the problem i purchase something low value, maybe rm10, ship in envelop or small package, how the custom trace the item value and tax me RM1 and how do i pay that RM1 ? the manpower cost of tracing and collecting payment far exceed the tax they gain.
SUSnasiputih
post Dec 16 2023, 03:31 PM

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QUOTE(narf03 @ Dec 16 2023, 03:26 PM)
what if they didnt register ?

for example, i make a website and sell underwear, with payment gateway anybody on the planet can make transaction and pay me, once i collected the money, i ship out the item to their address, who cares its in israel or ukraine, i just ship, do i need to register to ukraine or israel gov for shipping things to their country ?
*
then custom will detain your delivery and make you personally goto customer warehouse at Sepang to pickup your RM10 toy?
or you can pay runner RM50 to represent you at sepang?

how does this work? terimakasih madani

in corrupt countries like afrika, add beaucracy to increase likelyhood of bribery.

This post has been edited by nasiputih: Dec 16 2023, 03:31 PM
MR_alien
post Dec 16 2023, 03:31 PM

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QUOTE(narf03 @ Dec 16 2023, 03:29 PM)
thats the problem i purchase something low value, maybe rm10, ship in envelop or small package, how the custom trace the item value and tax me RM1 and how do i pay that RM1 ? the manpower cost of tracing and collecting payment far exceed the tax they gain.
*
i think all parcel have to mention the value of the object inside
even if u go send stuff at J&T, they'll also ask u to fill in the value of the stuff inside
brkli
post Dec 16 2023, 03:34 PM

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QUOTE(pisces88 @ Dec 15 2023, 08:22 PM)
this is for china sellers on local platform

example u see china sellers sell rm10 on shopee, so after tax will be rm11. government wan to help local sellers actually. now many china sellers on shopee lazada didnt pay any tax
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but "local" seller (person actually living in malaysia) also source their inventory from china/oversea...
narf03
post Dec 16 2023, 03:35 PM

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QUOTE(MR_alien @ Dec 16 2023, 03:31 PM)
i think all parcel have to mention the value of the object inside
even if u go send stuff at J&T, they'll also ask u to fill in the value of the stuff inside
*
that is not a world standard, you do that here, doesnt mean entire world do that, and even its written, in japanese, korean, manafaskar, and currency in all different currency, how u gonna handle ?

thats why the current system in place, custom only stop expensive package and tax kao kao, ignore all the sardine, cause the manpower to handle all the sardines completely not worth it, its like 10x more work(far more small packages), and 10x smaller income.
brkli
post Dec 16 2023, 03:38 PM

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QUOTE(MR_alien @ Dec 16 2023, 03:31 PM)
i think all parcel have to mention the value of the object inside
even if u go send stuff at J&T, they'll also ask u to fill in the value of the stuff inside
*
yup buy RM 0.10 runberbands need provide cerification and supporting document and declare it to custom. custom need go throught alm the documentation and access it value and tax it RM 0.01. all in a days work. time well spent.

This post has been edited by brkli: Dec 16 2023, 03:38 PM
MR_alien
post Dec 16 2023, 03:40 PM

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QUOTE(narf03 @ Dec 16 2023, 03:35 PM)
that is not a world standard, you do that here, doesnt mean entire world do that, and even its written, in japanese, korean, manafaskar, and currency in all different currency, how u gonna handle ?

thats why the current system in place, custom only stop expensive package and tax kao kao, ignore all the sardine, cause the manpower to handle all the sardines completely not worth it, its like 10x more work(far more small packages), and 10x smaller income.
*
they're creating jobs laugh.gif

immigration and customs kan complain lack of manpower
now with new stream of revenue, they can finally hire more manpower
Boomwick
post Dec 16 2023, 03:40 PM

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QUOTE(abc2005 @ Dec 16 2023, 01:21 PM)
just bring back 6% GST much better instead of all sampah taxes.
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Yeap

Tats right..

But he prefer to pattern banyak
SUSnasiputih
post Dec 16 2023, 03:44 PM

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QUOTE(narf03 @ Dec 16 2023, 03:35 PM)
that is not a world standard, you do that here, doesnt mean entire world do that, and even its written, in japanese, korean, manafaskar, and currency in all different currency, how u gonna handle ?

thats why the current system in place, custom only stop expensive package and tax kao kao, ignore all the sardine, cause the manpower to handle all the sardines completely not worth it, its like 10x more work(far more small packages), and 10x smaller income.
*
since need more manpower to check the RM20 underwear package, will need to recruit another 10K government workers like greece, argentina, venezuale and zimbabwe?
ayam konopuis on this.
Natsukashii
post Dec 16 2023, 03:51 PM

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QUOTE(Chrono-Trigger @ Dec 15 2023, 09:20 PM)
you can choose

1. Taxation of 10%, ringgit remains stable as government no longer print money but choose the painful path to increase taxation but maintain value of ringgit.

2. No taxation, but ringgit depreciates another 10% due to more deficit and printing of money.
You buy from China, RM300, gomen tax 10%, you pay RM330.

You buy from China, gomen no tax, but ringgit falls 10%, you need RM330 to buy the same amount of good.

Which one  you choose?
*
I am not economy expert

So I ask if it's really want you mean.. with this 10% tax, our MYR will not depreciate as bad as it is depreciating now?
narf03
post Dec 16 2023, 03:53 PM

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QUOTE(nasiputih @ Dec 16 2023, 03:44 PM)
since need more manpower to check the RM20 underwear package, will need to recruit another 10K government workers like greece, argentina, venezuale and zimbabwe?
ayam konopuis on this.
*
my common sense tell me its not going to work and custom will just open 1 eye close 1 eye, not stopping anything, cause they dont have the capacity to trace/keep/store that many small package per day.
LamboSama
post Dec 16 2023, 03:59 PM

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QUOTE(narf03 @ Dec 16 2023, 03:29 PM)
thats the problem i purchase something low value, maybe rm10, ship in envelop or small package, how the custom trace the item value and tax me RM1 and how do i pay that RM1 ? the manpower cost of tracing and collecting payment far exceed the tax they gain.
*
Just like all those subsidies mechanism. End up costing more for enforcement.
Or they charge from retail site. Which will just make people buy from online less.

That's one of the reasons for postponement.
Customs headache over tracking, enforcement, categorisation, recording, reporting.

This post has been edited by LamboSama: Dec 16 2023, 04:02 PM
Chrono-Trigger
post Dec 16 2023, 04:06 PM

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QUOTE(Natsukashii @ Dec 16 2023, 03:51 PM)
I am not economy expert

So I ask if it's really want you mean.. with this 10% tax, our MYR will not depreciate as bad as it is depreciating now?
*
I am saying in general, the government can choose few ways to deal with increased spending.

Taxation is not popular because it puts less money in people's pocket. GST isn't popular because everyone gets taxed. But taxation has net effect of decreasing money supply in the system in some ways because there is less ringgit circulating in the market which has effect on consumption and inflation. Less people spend , less demand for good, prices of good fall.

Taxation also increases government revenue and reduces deficit, which investors like as they will see Malaysia as stable. Ringgit will be stable.


If you don't tax, government has no way to get more money but resort to borrowing by issuing debt papers, which has net effect of increasing ringgit supply vs US dollar in market. In long run, our deficit will be high, and debt reaching 1.5 trillion now, which looks very bad for investors. Even local investors are worried about it and convert their Ringgit to USD and SGD, making ringgit depreciates.

You will still get RM2000 in your hand, but that RM2000 can buy very little things.. like what is happening to ringgit vs SGD....
s@ni
post Dec 16 2023, 04:08 PM

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QUOTE(N9484640 @ Dec 15 2023, 08:12 PM)
low value goods - tax! high value goods also tax. luxury goods tax also. might as well just say tax everything
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Yeah.... Might as well introduce gst balik.


Pmx. Sungguh
SUSnasiputih
post Dec 16 2023, 04:12 PM

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QUOTE(Chrono-Trigger @ Dec 16 2023, 04:06 PM)
I am saying in general, the government can choose few ways to deal with increased spending.

Taxation is not popular because it puts less money in people's pocket. GST isn't popular because everyone gets taxed. But taxation has net effect of decreasing money supply in the system in some ways because there is less ringgit circulating in the market which has effect on consumption and inflation. Less people spend , less demand for good, prices of good fall.

Taxation also increases government revenue and reduces deficit, which investors like as they will see Malaysia as stable. Ringgit will be stable.
If you don't tax, government has no way to get more money but resort to borrowing by issuing debt papers, which has net effect of increasing ringgit supply vs US dollar in market. In long run, our deficit will be high, and debt reaching 1.5 trillion now, which looks very bad for investors. Even local investors are worried about it and convert their Ringgit to USD and SGD, making ringgit depreciates.

You will still get RM2000 in your hand, but that RM2000 can buy very little things.. like what is happening to ringgit vs SGD....
*
maybe dont spend billions on stealth ships and moral pulis? then dont need to issue debt paper
or is that too hard to understand?



As expected, Hishammuddin did not state any financial cost of the project apart from saying that the vendors of the project have financial commitments of RM4 billion. As the government already has paid some RM6.1 billion for the project, we can assumed that the RM9.1 billion ceiling price will be breached. As I stated earlier, the estimates for the project cost – if it was started in January 2022 – was RM14 billion.

Why is the estimates to restart the project important? The previous defence minister had already told the government will not pay more than the ceiling price (RM9.1 billion) though he did not say who will pay for the higher costs. I am told that Boustead Heavy Engineering Corporation (BHIC) – the parent company of BNS – will pay for the the costs overrun (some RM5 billion) by issuing an Islamic sukuk (bonds

https://www.malaysiandefence.com/cabinet-ap...of-lcs-project/


https://www.thestar.com.my/news/nation/2021/10/29/...

Budget 2022: RM1.5bil for Islamic affairs under PM's Dept
WebOct 29, 2021 · Budget 2022: RM1.5bil for Islamic affairs under PM's Dept. PETALING JAYA: RM1.5bil has been earmarked for the management and development of Islamic affairs …



One of the more recent gripes was about JAKIM’s budget, which was increased from RM943 million last year to RM956.6 million this year. And while the Religious Affairs Minister Idris Ahmad had explained that the increase was to cover the department’s operational costs, like rental and programs organized by the department, some weren’t convinced.

Perhaps the biggest gripe about this allocation is that we don’t know why JAKIM needs that much money in the first place, or what they even do with it. Some had pointed out that religious matters are mostly under state purview anyway, so the large budget for a federal religious body is questionable. Others are worried that the money won’t be used to address real problems.

https://cilisos.my/budget-2022-jakim-finas-...y-isis-compare/


Global web icon
New Straits Times
https://www.nst.com.my/news/nation/2022/10/838294/...

2023 Budget: RM1.5 billion for Islamic religious affairs, RM500 …
WebOct 7, 2022 · KUALA LUMPUR: A total of RM1.5 billion will be allocated for the management and development of Islamic religious affairs under the 2023 Budget.

This post has been edited by nasiputih: Dec 16 2023, 04:19 PM
Stirmling
post Dec 16 2023, 04:13 PM

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everything under $500
So basically almost 90% of online purchases ah?
dont want to tax china or other foreign based imports so just slap everything with 10%
Natsukashii
post Dec 16 2023, 04:15 PM

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QUOTE(Chrono-Trigger @ Dec 16 2023, 04:06 PM)
I am saying in general, the government can choose few ways to deal with increased spending.

Taxation is not popular because it puts less money in people's pocket. GST isn't popular because everyone gets taxed. But taxation has net effect of decreasing money supply in the system in some ways because there is less ringgit circulating in the market which has effect on consumption and inflation. Less people spend , less demand for good, prices of good fall.

Taxation also increases government revenue and reduces deficit, which investors like as they will see Malaysia as stable. Ringgit will be stable.
If you don't tax, government has no way to get more money but resort to borrowing by issuing debt papers, which has net effect of increasing ringgit supply vs US dollar in market. In long run, our deficit will be high, and debt reaching 1.5 trillion now, which looks very bad for investors. Even local investors are worried about it and convert their Ringgit to USD and SGD, making ringgit depreciates.

You will still get RM2000 in your hand, but that RM2000 can buy very little things.. like what is happening to ringgit vs SGD....
*
So gomen also need to spend wisely.. RM100 ewallet was not necessary, those that have moved to cashless gonna stay with cashless, and those that still prefer cash, just gonna dump the ewallet app after finishing the RM100.

RM100 x 10 million.. that's huge.

.. and 2 billion for jakim.

Instead of removing GST completely, turning it into 1% would have been helpful until today.

Also, a lot of those evading tax.. gomen should go after them.




Red_rustyjelly
post Dec 16 2023, 04:19 PM

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QUOTE(msacras @ Dec 15 2023, 08:19 PM)
Local sellers supposedly import in big scales and already subjected to import duty before this.

This new tax is to kill those dropshippers or small scale businesses.
*
I import stuff directly from brand owner with yearly sales and purchase agreement, service center, providing after sales support and goods return. Have to pay duty and tax upon arrival in port Klang

Meanwhile some clever consumer decided to order from taobao, change plug themselves and use it. But when things spoilt they want service but I cannot offer because it follows batch number.

Good initiative by government btw.

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