In the early January 2023, we reported that the government will begin collecting a new sales tax in April 2023, which would result in Malaysian consumers paying 10% more each time they purchase items imported from abroad (RM500 and below).
The new sales tax applies to items that cost less than RM500 and they will be classified as “low-value goods” (LVG). These items are sold online and shipped from overseas to customers in Malaysia by air, sea, or land. The tax applies to all areas of Malaysia, including duty-free islands like Labuan, Langkawi, Tioman, and Pangkor, as well as special areas such as free zones.
The new sales tax was supposed to start next month, but the Customs Department just announced that they will postponed the sales tax to a later date that they will announced later.
They didn’t provide any other information as to why they delayed it. We will keep our eyes open for a new date.
