Free Malaysia Today
10% sales tax on online goods to apply from Jan 1
Story by FMT Reporters  •
1h
PETALING JAYA: A 10% sales tax will be imposed from Jan 1 on online sales of goods costing below RM500, according to a recent customs guide.

The low-value goods tax will apply on goods bought online and delivered to Malaysia by vendors registered with the finance ministry.

The tax was introduced in an amendment to the Sales Tax Act passed by the Dewan Rakyat in August last year and was to have been imposed from April 1 this year but was postponed.

The Dewan Rakyat was told last year that the government expects to collect RM200 million a year from the tax.

The deputy finance minister then, Shahar Abdullah, said the tax would level the playing field between online sellers both inside and outside Malaysia, and would empower local markets and businessmen.
The tax was first mooted by former finance minister Tengku Zafrul Aziz when tabling the 2022 budget.