KUCHING: A consumer organisation feels people may shift to buying local products with the imposition of sales tax on online imported products costing below RM500.
The prices might not differ too much, said Consumer Voice Association of Sarawak (Covas) President Michael Tiong.
Reacting to the recently approved Sales Tax (Amendment) Bill 2022, he said its implementation was necessary.
“The small value imported products or low-value goods (LVG) have created a loophole and this has been affecting government income as online business grows at the expense of local traditional companies,” he said.
Thus, tax collection, he said, is necessary to ensure there is a healthy government revenue and sustainability to cover expenses involving growing public health, social welfare and education all of which are critical to the public.
Despite the 10 per cent tax which will be implemented next year, the imported goods sold online will still be cheaper than the traditional platform, according to Tiong.
However, he stressed, the government must ensure the sales tax collected is put to good use.
