Tax on imported LVG will boost consumer demand for local products

KUALA LUMPUR: The implementation of a 10 per cent sales tax on low-value goods (LVG) costing RM500 and below sold online would allow local businesses to market their products of the same quality at an even selling price, thus boosting consumer demand.

Putra Business School economic analyst Assoc Prof Dr Ahmed Razman Abdul Latiff said the tax, which would start on Jan 1 next year, would allow for the stabilisation of price between imported and local goods as imported LVG are currently not subjected to any tax whilst a six per cent sales and service tax (SST) is imposed on locally produced items, resulting to it being sidelined by consumers.