KUALA LUMPUR – Putrajaya should consider postponing the implementation of the 10% tax on imported low-value goods (LVG) sold online, or apply it selectively to imported items that have Malaysian-made equivalents, MCA president Wee Ka Siong said today.
The former transport minister said the blanket tax on imported items sold online will affect B40 consumers, and will also be difficult to enforce on certain online shopping platforms.
“The cost of an imported RM200 item will be RM20 more, not to mention the 10% SST on delivery cost. I suggest we delay implementation of the LVG, now is not the best time because the economy is not fully recovered.
“And while it will be easier to enforce the LVG with Shopee and Lazada, it will be harder to control online sales activities on TikTok, Facebook and Instagram. The government has to think about this carefully,” the Ayer Hitam MP said in a video on his Facebook page.
He also questioned the government’s rationale that the tax on LVG sold online would protect local producers and retailers.
“But how many (of the goods) are actually produced here, in this regard? I see that most products are not made in Malaysia, rather they are bought from overseas by small and medium enterprises and sold to buyers here,” Wee said.
He suggested the government apply the tax selectively to imported goods which are also found in Malaysia.
“For others (that are not produced in Malaysia) we don’t impose (the tax).”
For this purpose, Wee proposed that the government make a list of all goods made in Malaysia, so that local producers can be identified.
Ultimately, he added, the best long-term solution for increasing government revenue is the goods and services tax (GST), whereas the tax on LGV will directly affect B40 buyers.
“We need to think carefully as the SST will also be raised from 6% to 8%.”
The 10% sales tax on LVG sold online will come into effect on January 1. Originally scheduled for implementation on April 1 this year, the tax was indefinitely postponed in March. – December 28, 2023