10% Tax Is Charged On The Purchase Of Imported Goods Below RM500

<p>&nbsp;Recently, the Madani Government announced a 10% tax on low value goods (LVG) sold online from 1 January next with only imported goods valued at RM500 and below.</p><p><br /></p><p>Minister of Communications, Fahmi Fadzil said that the imposed tax can encourage local sellers to be more competitive in selling products and it will not affect local brands bought online.</p><p><br /></p><p>He also said that his ministry also sought confirmation from the Royal Malaysian Customs Department (JKDM) and the Ministry of Finance regarding the matter after it became a hot topic among media users.</p><p><br /></p><p><br /></p><p>He also invited the public to refer to the official website of the Customs Department for more detailed information from time to time. They will monitor and ensure that transactions between sellers and buyers that occur online will be more beneficial to the national economy.</p><p><br /></p><p>Fahmi said that the implementation of the tax had been raised in the 2022 Budget and should have been implemented in April this year. However, the government has decided to implement it from 1 January 2024 and apply to imported products only.</p><p><br /></p><p>Earlier, JKDM defined LVG as all goods except cigarettes, tobacco products, liquor, electronic cigarettes and tools used for smoking that are sold for no more than RM500. It does not matter whether it is brought into Malaysia by land, sea or air.</p><p><br /></p><p>Those who sell LVG on online platforms or operate online markets must register with JKDM if the total sales value of the products brought into Malaysia exceeds RM500,000 within a 12-month period.</p>