nearday,The Malaysian Customs Office announced that,Starting from January 1, 2024, taxes will be imposed on low value goods sold online. All low value goods with a price not exceeding RM500 will be subject to a 10% tax rate, including goods entering Malaysia by land, sea or air; Cigarettes, tobacco products, alcoholic beverages, electronic cigarettes, and preparations used for smoking are not taxed under this tax system.

The Malaysian government isThe 2022 fiscal year budget has already proposed a low value commodity consumption tax, aimed at providing a fair competitive environment for goods manufactured in Malaysia. According to regulations, low value goodsofSales tax will be collected from registered merchants to consumers. Sales tax is only calculated based on the value of goods, and other transportation and insurance costs are not included in the scope of taxation. This new tax system is only applicable to next yearOrders confirmed on or after January 1st.

All merchants selling low value goods in Malaysia or abroad, as long as theyIf the total amount of goods sold in Malaysia exceeds 500000 Ringgit within 12 months, it is necessary to register on the website of the Customs Bureau. Merchants will be assigned a tax period every three months, and those who delay paying taxes will face an additional 10% to 15% tax penalty.

Malaysia's Minister of Communications, Fatimi, emphasized that this measure only applies to imported goods sold online,bookThe goods produced by the country are not affected. He called on businesses and the public to browse the official website of the Customs Bureau for more details.

After the news was released, Southeast Asia's fastest-growing e-commerce platformShopee immediately released the relevant instructions as requested. The Shopee platform states that for imported goods priced below RM500, the platform system will automatically add a 10% low price commodity tax based on the discounted price of the goods at the front desk, and settle the total account after the tax is added when the consumer places an order and makes payment. There is no need for cross-border sellers to adjust the price of the goods, which means the low price commodity tax is borne by the consumer at the time of purchase.

Regarding Malaysia's tax reform, some industry insiders believe that the tax on low-priced goods seems to be shifting more towards consumers. And it is foreseeable that consumers are likely unwilling to pay for this new tax rate. For sellers, new tax policies may reduce the price competitiveness of imported products. However, sellers can choose suppliers or product sources with price advantages to achieve cooperation and reduce costs, thereby improving competitiveness.