‘10% tax for foreign goods ordered online valued at under RM500’

KUALA LUMPUR: The 10% sales tax on online purchases is only applicable to imported goods valued under RM500.Communications Minister Fahmi Fadzil said this was to enhance the competitiveness of local products which were not affected by the tax when purchased online.

“It only applies to products imported from overseas sold online in Malaysia. Products produced in the country are not affected,” he said.

“I hope this will clear up misunderstandings among the public about the tax.

“We can refer to the official Customs Department website for detailed information and from time to time, we will carry out monitoring to make sure the people, especially sellers and buyers who carry out online transactions, really understand (about the tax).”

Fahmi, who is the unity government spokesperson, told a press conference after launching the Reuse, Educate, Nurture and Empower with Waste (Renew) programme at Dataran Sri Angkasa Jaya here yesterday, Bernama reported.

The Royal Malaysian Customs Department announced on Saturday that Malaysia would 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 of Universiti Teknologi Mara, Fahmi said it was a good initiative to preserve the environment.

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