Fahmi: 10% tax only applies to imported goods under RM500 bought online

KUALA LUMPUR: The 10% sales tax on online purchases is only applicable to imported goods valued under RM500, says Fahmi Fadzil.

The Communications Minister said this was to enhance the competitiveness of local products which were not affected by the tax when bought online.

"It only applies to products imported from overseas that are sold online in Malaysia. Products produced in the country are not affected. So, I hope this will clear up misunderstandings among the public about the tax.

"We can refer to the official website of the Customs Department for more detailed information and from time to time, we will carry out monitoring to ensure the people, especially sellers and buyers who carry out online transactions, really understand (the tax)," he said.

Fahmi, who is the unity government spokesperson, was speaking at a press conference after launching the Reuse, Educate, Nurture and Empower with Waste (RENEW) programme at Dataran Sri Angkasa Jaya here Saturday (Dec 17).

The Royal Malaysian Customs Department announced on Saturday (Dec 17) that Malaysia will start charging a 10% sales tax on low value goods (LVG) sold online from Jan 1, 2024.

On the RENEW programme organised by the Institute of Continuing Education Professional Studies (iCEPS) of Universiti Teknologi MARA (UiTM), Fahmi, who is Lembah Pantai MP, said it was a good initiative towards preserving the environment.

He said more than 100kg of used cooking oil was collected, thus reflecting the increased awareness of the local community around Lembah Pantai on used cooking oil management. - Bernama