- Implementation of a 10% sales tax on low-value goods sold online in Malaysia
- Aims to stabilize prices between imported and local goods
- Imported goods currently not subjected to tax, while locally produced goods have a 6% sales and service tax
- Tax will make local goods appear more affordable and attract higher demand
- Tax only applies to goods valued at less than RM500
- Intended to level the playing field for businesses, especially micro, small, and medium-sized enterprises
- Increase in revenue for local businesses could lead to more job opportunities and a better domestic economy
- Increase in government income and strengthening of the ringgit
- Potential for higher tax intake for the government depending on the tax’s elasticity
- Tax represents an additional RM1 to the purchase price of imported goods valued at RM10
- Eroding purchasing power and expenditure capacity of consumers may be a concern.
Source: freemalaysiatoday.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
