With the impending taxation policy on low value goods below RM500 sold online, small and medium business operators are hoping the ecommerce platform does not pass on the additional cost on local sellers.
The association representing SME’s, fully support the implementation of the low value goods tax and have been the early proponents of this equalising tax.
It added that local retailers and online sellers, especially SMEs, are fighting an unfair competition against foreign sellers. While local retailers have to pay tax at various points of the supply chain, including when bringing in components or raw materials as well as finished goods into Malaysia, we are being undercut by foreign sellers and local dropshippers
who have largely escaped from paying tax to Malaysia on their products. This artificially distorts pricing in favour of these foreign sellers.
The association also noted that directly delivered foreign products may not have undergone the same stringent quality and safety tests for electrical goods, foodstuff and pharmaceutical products that Malaysian manufacturers and importers are subject to. This could pose fire, safety and health risks to Malaysian consumers.
The mandatory registration as well as 10 percent tax on LVG will also drive additional revenue to Malaysia and support the ringgit, while promoting domestic e-commerce.
