10 pct tax on online purchases only applicable for imported goods under RM500 — Fahmi

KUALA LUMPUR, Dec 17: The 10 per cent sales tax on online purchases is only applicable to imported goods valued under RM500, said Communications Minister Fahmi Fadzil.

He 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 make sure the people, especially sellers and buyers who carry out online transactions, really understand (about the tax),” he said.

Fahmi, who is the Unity Government spokesperson, told a press conference after launching the Reuse, Educate, Nurture and Empower with Waste (R.E.N.E.W) programme at Dataran Sri Angkasa Jaya here today.

The Royal Malaysian Customs Department (JKDM) announced yesterday that Malaysia will start charging a 10 per cent sales tax on low value goods (LVG) sold online from Jan 1, 2024.

On the R.E.N.E.W 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 100 kg of used cooking oil were collected yesterday, thus reflecting the increased awareness of the local community around Lembah Pantai on the used cooking oil management.