Malaysia’s new sales tax on cheap items bought online from overseas merchants has drawn mixed reactions, with local sellers saying they welcomed the fairer competition while others raised concerns that the higher prices would burden the poor.
Malaysia began imposing a new 10% low-value goods (LVG) tax on 1 January on items priced below 500 ringgit that are bought online and delivered from abroad.
The government said the new sales tax would help level the playing field for local and overseas sellers by addressing the disparity in their tax treatment.
There is a 6% sales and service tax on locally produced items.
The Small and Medium Enterprises Association of Malaysia, which has more than 3,500 members, said the tax would allow local sellers to compete while driving additional revenue to Malaysia.
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