Govt To Push For New Bill That Imposes 10% Tax On Imported Low-Value Items Bought Online
Malaysians may soon have to pay a 10% sales tax when purchasing imported low-value goods online
According to The Star, Deputy Finance Minister II Yamani Hafez Musa tabled a new bill on the sales tax for its first reading in the Dewan Rakyat yesterday, 2 August.
The new bill, which involves amendments to Sales Tax Act 2018, is expected to be passed during the current meeting as it ends on 4 August.
The proposed amendments aim to tax imported low-value goods that have a total value of less than RM500 per consignment as they are currently exempted from sales tax when they are brought in using air courier services through selected international airports.
The move is aimed at levelling the playing field between overseas online sellers and local manufacturers, who are currently subject to a 5% to 10% sales tax for items sold
According to Thannees Tax Consulting Services managing director SM Thanneermalai in theSundaily, it is hoped that Malaysians will be encouraged to purchase locally-made products instead.
Meanwhile, as for sellers of low-value goods, they will be required to register with the Ministry of Finance, regardless of their citizenship or geographical location.
Sellers will also be required to display details of their low-value goods on all packages that come into the country.
Should the bill be passed, Finance Minister Tengku Zafrul Aziz will determine the new law's date of implementation
It was previously reported that the new tax will be implemented from January 2023.Authorities are also in the midst of determining the mechanism to be implemented by the customs to successfully implement the low-value goods tax scheme by next year.
The sales tax was introduced by the Ministry of Finance during the announcement of Budget 2022 in October last year:
Here are more #dewanrakyat stories on SAYS: