Attention Malay Site Sellers! Another Tax Is Going To Be Raised
Jayson 26 Jan 2024 03:31
It is reported that Malaysia's digital services tax will be raised from 6% to 8% starting from March 1, 2024. Although the figure is only 2%, combined with the recent increase in utility bills, sellers will definitely increase the price of their products by more than this.
MCA President Wei Jiaxiang said that the Pakatan Harapan government implemented the digital service tax on January 1, 2020, but the price increase of digital services at that time was not only 6%, and some businesses took the opportunity to raise prices.
"What is certain is that prices at Apple Store, Google services, Netflix, Disney+, and Amazon Prime will all increase. In addition, goods sold on e-commerce platforms Lazada, Shopee, TikTok, and Grab will also be affected, and prices will also increase. The increase will be effective from March 1."
He said that with the recent increase in electricity and water bills, new taxes such as overseas low-priced goods (LVG) and high-value goods (HVG) will take effect this year, and the sales tax (SST) has also been increased from 6% to 8%, the scope of taxation has been expanded and implemented at the same time.
Merchants will use price increases as an excuse to significantly increase prices, ultimately passing all costs on to consumers.
MCA President Wei Jiaxiang said that the Pakatan Harapan government implemented the digital service tax on January 1, 2020, but the price increase of digital services at that time was not only 6%, and some businesses took the opportunity to raise prices.
"What is certain is that prices at Apple Store, Google services, Netflix, Disney+, and Amazon Prime will all increase. In addition, goods sold on e-commerce platforms Lazada, Shopee, TikTok, and Grab will also be affected, and prices will also increase. The increase will be effective from March 1."
He said that with the recent increase in electricity and water bills, new taxes such as overseas low-priced goods (LVG) and high-value goods (HVG) will take effect this year, and the sales tax (SST) has also been increased from 6% to 8%, the scope of taxation has been expanded and implemented at the same time.
Merchants will use price increases as an excuse to significantly increase prices, ultimately passing all costs on to consumers.
