eCommerce sales tax gets mixed reaction

Malaysia University of Science and Technology economics professor Geoffrey Williams said that the sales tax’s impact on the eCommerce industry would not be too bad as a whole, as the market is “very competitive, cost-effective and convenient.

KUALA LUMPUR: News of the upcoming imposition of the sales tax on imported low-value goods (LVG) purchased online is being met with mixed reaction, as economists begin to look into its potential impact on eCommerce players and consumers.

Last week, Dewan Rakyat passed the Sales Tax (Amendment) Bill 2022 to provide for the imposition of a 10% sales tax on online purchases of LVGs worth below RM500 which are sold on online platforms and delivered to Malaysia, starting next year.