JOHOR BARU: Implementing the low-value goods (LVG) tax is a move that will widen the tax base without affecting the lower-income groups, says the Malaysian Electrical Appliances Distribution Association (Meade).
Its chairman, Tan Chee How, said the move would allow local sellers, including small and medium enterprises (SMEs), to compete with foreign businesses in terms of services, proximity and consumer protection.
“This will allow local businesses to market their products of the same quality as that from other countries at an even selling price.
“It will also boost consumer demands, which may lead to more job creation and a more sustainable domestic economy. It will also help strengthen the Ringgit as it will reduce overseas cash flow,” he said in a statement on Wednesday (Jan 3).
Tan, who is also the executive director of Malaysian household appliance distributor Milux Corporation Berhad, added that the mandatory registration and the 10% tax on LVG will drive more revenue to the country while promoting domestic e-commerce.
“We hope the government could consider utilising the tax proceeds to further assist SMEs and local merchants in expanding their businesses.
“We also hope that the competition with foreign businesses in terms of pricing will also prompt more foreign manufacturers to seek partnerships in Malaysia,” he said.
Starting Jan 1, Malaysia began charging a 10% sales tax on imported LVG costing RM500 and below sold online.
