Sales tax may spark in-person shopping

Date:

KUCHING: A sales tax on online purchased low-value goods (LVG) will create a fairer playing field for local and imported items which in turn may encourage consumers to return to traditional in-person shopping.

Honorary Professor Madeline Berma pointed out that the sales tax will ensure equal tax treatment for locally manufactured and imported goods.

Currently, she said local manufacturers are taxed between five per cent and 10 per cent sales tax while foreign sellers are exempted.

“The new low value (LVG) is targeted to impose a flat rate of 10 per cent on both local and foreign sellers who sell LVG on the online marketplace or operate an online marketplace.

“If goods purchased over the Internet are taxed, this will raise the prices of the goods to the consumer.

“The increase in overall prices on goods caused by the introduction of the sales tax will spur additional competition between virtual (online) and brick-and-mortar (physical) shops,” she told New Sarawak Tribune recently.

With the increase in overall prices of LVG, the academic from Universiti Malaysia Sarawak (UNIMAS) said it also may discourage online shopping especially among small-scale consumers and sellers.

Reacting to the new tax measure, she said the nation’s tax revenue will increase as the government anticipates collecting RM200 million per year from the implementation of this levy.

However, she said it is still unclear how the government will impose laws on the Internet.

“Imposing regulations on online retail might be excessively difficult right now especially, given that Internet businesses at times appear to operate out of ambiguous locations.

“Also this tax will discourage sellers and consumers (small ones) to do online business and lead to a shift back to physical shopping,” she added.

The government will begin imposing a flat rate of 10 per cent tax on imported (LVG) that are purchased online, starting from 2023.

Imported LVG are defined as imported goods with a total value of less than RM500 per consignment.

Acoustic Battle to be annual event

KOTA SAMARAHAN: Ten solo singers and bands took part in the "Acoustic Battle 2022" competition here. Organisng chairman Muhd Shahril Firdaus Eli said the event...

Share post:

Our Opinion

More like this
Related

Rep assures villagers of development projects

SARATOK: Every application for infrastructure projects will be taken...

Poor weather hampers search for missing fisherman

MUKAH: Inclement weather hampered the fifth day of the...

Sarawak records 45 deaths from rabies since 2017

KUCHING: All 32 immune belt enforcement teams (IBET) will...

Council cracks whip on used cooking oil 

MIRI: Miri City Council (MCC) will be taking stern...

Three week controlled release of water from Bakun

KUCHING: Sarawak Energy is commencing its seasonal controlled release...

Rabies epidemic manageable but vigilance must remain

KUCHING: The number of rabies cases in Sarawak is...

Driver injured as 4WD rams tree

MIRI: A 42 year-old man suffered injuries to his...

Snake caught in hospital

BETONG: A hospital employee was shocked to discover a...

Concert combines music, animation, short film

KOTA SAMARAHAN: A prominent local band, At Adau, has...

Council issues notice on trading stalls

KUCHING: Kuching North City Council (DBKU) will offer trading...

State sets up IBET to curb spread of rabies

KUCHING: The establishment of the Immune Belt Enforcement Team...

RM560 mln spent by state to combat COVID-19 outbreak

KUCHING: Since COVID-19's outbreak, the Sarawak government has spent...