Postpone 10% low-value goods tax, says Wee

Postpone 10% low-value goods tax, says Wee

Ayer Hitam MP Wee Ka Siong cites economic recovery concerns and the need to prioritise the B40 group.

Ayer Hitam MP Wee Ka Siong says this is not the best time to introduce the low-value goods tax as the economy has not fully recovered.
PETALING JAYA:
Ayer Hitam MP Wee Ka Siong has urged the government to postpone the planned 10% tax on low-value goods (LVG), citing concerns over timing.

“This is not the best time as our economy has not fully recovered. We need to think about the best way for the benefit of the people. We must take care of the B40 group,” he said in a video uploaded on Facebook.

Wee also said LVG tax may have legal implications which the government needed to look into as most of the goods were not local but foreign, and the B40 group often purchased goods online.

“If Malaysia does not produce a certain item, why should we restrict the B40 from purchasing it online?

“If this approach can enhance efficiency and is more cost-effective, why not? That’s what I mean by being selective.”

On Dec 18, the finance ministry announced that a 10% tax would be imposed on imported LVG sold online to level the playing field for businesses in Malaysia, especially micro, small and medium-sized enterprises and those operating from brick-and-mortar premises.

The ministry said there is a common global practice not to impose sales tax and import duty on imports below a “de minimis” (minimal) value, which was set at RM500 for Malaysia.

The tax was introduced in an amendment to the Sales Tax Act passed by the Dewan Rakyat in August last year and was to have been imposed from April 1 this year but was later postponed.

The Dewan Rakyat was told last year that the government expects to collect RM200 million a year from this tax.

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