LVG tax will boost demand for local products

Prof Ahmed Razman said the introduction of the LVG tax would make local goods appear more affordable and attract demand.

KUALA LUMPUR: The implementation of a 10% 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 would allow for the stabilisation of price between imported and local goods, as imported LVG are currently not subjected to any tax while a 6% sales and service tax (SST) is imposed on locally produced items, resulting to it being sidelined by consumers.