The Malaysia Cross Border e-Commerce Association (MCBEA) asserts that the introduction of a 10% tax on low-value goods (LVG) priced at RM500 and below purchased from overseas will not adversely affect consumers.
The tax aims to level the playing field for businesses, particularly micro, small, and medium-sized enterprises (MSMEs).
FMT reports that MCBEA President Eng Kin Hoong believes consumers, who mostly purchase goods below RM500, will not mind the minimal increase. However, the association expresses concern about the government’s implementation of the LVG tax.
Economist Yeah Kim Leng suggests the impact on consumer spending and businesses will likely be temporary, with consumers adjusting to higher prices over time.
The LVG tax is seen as a measure to equalise the playing field for local businesses and is expected to generate RM200 million annually, though its implementation has been postponed to 1 January 2024.
