KUALA LUMPUR – Malaysians could very soon be paying more when purchasing imported low-value goods through online platforms.
The Finance Ministry today tabled a bill for the first reading in Parliament to amend the Sales Tax Act 2018 to include products from overseas that are sold at a price not more than a prescribed amount.
While no value was mentioned in the bill, it is understood the amendment will affect imported items below RM500 per consignment, which are currently exempted.
Deputy Finance Minister II Yamani Hafez Musa said the bill will be tabled for the second reading, where it will be debated and voted on, in the current meeting.
According to a copy of the bill uploaded on Parliament’s website, the act will be amended to include a new Part IIIA on the imposition of sales tax on low-value goods, which will apply to registered sellers who operate via online marketplaces.
A new schedule in the bill stipulates that the finance minister will have the power to determine what items can be taxed, including based on the prices and criteria of the goods, and the manner in which the products are imported.
The minister is also empowered to appoint the date on which the amendments will come into effect.
According to the bill, no person shall be entitled to obtain delivery of any imported low-value good from customs or excise control if the sales tax has not been paid in full.
However, goods purchased before the effective date of enforcement need not be charged, even if the items are delivered to Malaysia after the commencement of the change.
The proposal to tax imported low-value items was first announced during the tabling of Budget 2022 in October last year.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz had said then that the amendment would apply to goods sourced from overseas, sold by online sellers and sent to Malaysia via air courier.
The move is said to be aimed at providing an even playing field to local manufacturers who are currently subject to a 5% or 10% sales tax for goods sold, putting them at a disadvantage.
Australia, New Zealand and many other countries have already rectified this discrepancy by imposing tax on such low-value goods through their tax system. – The Vibes, August 1, 2022
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