KUALA LUMPUR – The low-value goods (LVG) tax of 10% on imported items sold online comes into force today but only Shopee is clearly stating to customers that the tax is being charged.
Checks across several platforms show there is a noticeable increase in items priced below RM500 brought into Malaysia from overseas.
However, Scoop’s checks so far found that Shopee is the only platform to clearly state to its users that the LVG tax is now in force, and that it is included in the final amount payable.
A pop-up appears on the screen explaining to the customer that Shopee is required to collect the tax starting today.
Other online shopping platforms do not provide any such notice to customers, although the prices of some items appear to be higher than previously, such as for skincare products.
X user @AdrianKan complained about the tax, calling it “a killer” as “so many things in Shopee (have) increased (in) price”.
The government announced last month that the 10% tax on low-value goods under RM500 sold online would begin today.
The newly introduced tax came into light after several rounds of postponement, as the tax was initially announced during the tabling of Budget 2022.
Individuals involved in the online sale of LVG or those operating an online marketplace for LVG transactions must register with the Customs Department if the cumulative sales value of the goods entering Malaysia exceeds RM500,000 within 12 months.
After the announcement drew flak from the public, the Finance Ministry on December 18 said that the government’s decision to impose the 10% additional sales tax is to level the playing field for the local retail industry.
Communications Minister Fahmi Fadzil also said the purpose of the tax is to enhance the competitiveness of local products. – January 1, 2024