Online purchases worth RM1,200 and below will soon be exempted from tax, said Second International Trade and Industry Minister Ong Ka Chuan.
Currently goods worth RM500 and below purchased through e-commerce sites were not subjected to any tax.
Ong said the tax exemption was part of the Digital Free Trade Zone initiative, which was mooted by Prime Minister Najib Razak during the tabling of Budget 2017 to boost the country’s e-commerce sector.
“This facility aims to reduce tax barriers to enable Malaysians to play an active role in e-commerce not only in the country but also at the international level,” Ong told reports after attending a Chinese New Year celebration in Ipoh on Sunday.
No policy existed where goods worth RM500 and below would not be taxable, he added, saying that under the DFTZ, the amount would be raised from RM500 to RM1,200 in the initial stage.
Najib will launch the DFTZ next month together with Alibaba chairman Jack Ma, who has been appointed digital economy adviser to the government.
