Malaysian Communications Minister Clarifies 10% Online Purchase Tax, Emphasizes Exemption for Local Goods

Communications Minister Fahmi Fadzil clarifies that the 10% sales tax on online purchases in Malaysia applies only to imported goods valued under RM500. Locally produced items are exempt, aiming to enhance their competitiveness. The minister emphasizes the need for public understanding and directs individuals to the Customs Department’s official website for detailed information. He also applauds the environmental initiative R.E.N.E.W, highlighting its success in promoting awareness, particularly in used cooking oil management.

18 December 2023 – In an effort to clarify misconceptions surrounding the 10% sales tax on online purchases, Communications Minister Fahmi Fadzil has announced that the tax is applicable only to imported goods valued below RM500. This measure aims to boost the competitiveness of locally produced items, exempting them from the tax when purchased online.

Minister Fahmi emphasized that the tax exclusively targets products imported from overseas and sold online within Malaysia, reassuring the public that domestically manufactured goods remain unaffected. To dispel any ambiguity, he encouraged individuals to consult the official website of the Customs Department for detailed information. Periodic monitoring will be conducted to ensure both sellers and buyers engaging in online transactions are well-informed about the tax.

During a press conference following the launch of the Reuse, Educate, Nurture, and Empower with Waste (R.E.N.E.W) program at Dataran Sri Angkasa Jaya, Minister Fahmi, who also serves as the unity government spokesperson, addressed the public. He emphasized the government’s commitment to clarifying the scope of the tax and ensuring public understanding.

The Royal Malaysian Customs Department (JKDM) recently announced the implementation of a 10% sales tax on low-value goods (LVG) sold online, effective January 1, 2024.

Minister Fahmi commended the environmental initiative R.E.N.E.W, organized by the Institute of Continuing Education Professional Studies (iCEPS) at Universiti Teknologi MARA (UiTM). As the Lembah Pantai MP, he acknowledged the significance of the program in promoting environmental awareness. He noted the successful collection of over 100 kilograms of used cooking oil, reflecting the heightened awareness of the local community in Lembah Pantai regarding proper used cooking oil management.

The minister concluded by expressing optimism about the positive impact of such environmental initiatives and reaffirmed the government’s commitment to fostering environmental consciousness. – ref: Bernama

Author: Terry KS

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