Customs wants 5% tax on smartphones

Saturation point: The once-hot Chinese smartphone market is expected to cool off dramatically this year, says a report.

PETALING JAYA: Sales tax on smartphones has been proposed at 5%, while the tax for most motor vehicles has been suggested at the full 10%.

These items were earlier proposed for tax exemption in the list re­­leased by the Customs Depart­ment.

In its updated list released on Monday, the department uploaded a 121-page guide which proposes items for tax exemption or the im­­position of a sales tax of either 5% or 10%.

Hard disks and pendrives are now expected to be taxed at 5%, although in July they were in the proposed tax-exempt list.

Mattresses, cabinets and dining tables are expected to be imposed the full 10% sales tax.

Personal hygiene items such as deodorant, toothpaste, toothbrush and soap are now ex­­pect­ed to be charged the full 10% sales tax.

Edible items such as sauces and dressings are now expected to be subjected to a 5% tax instead of being exempted.

Seeds, jojoba oil, castor oil and liquid sugar that were proposed for exemption have now been proposed for tax, with seeds (except cotton seeds) to be taxed at 5% or 10%, jojoba oil (10%), castor oil (10%) and liquid sugar (5%).

Cleaning apparatus such as brush­­es, brooms and mops that were earlier proposed for tax-exemption have been proposed for 10% tax.

There are many other items in the initial “to be taxed” list which remain in that proposed category in the updated list.

These include items such as DSLR and digital cameras, DVD and MP3 players, headphones, earphones and watches.

Other products that remain in the exempt list are mostly food items and sports equipment.