GEORGE TOWN: Gerakan today alleged that Malaysians will live in hardship next year due to the introduction of new taxes.
The latest is the 10 per cent sales tax for online sales of imported low-value goods (LVG).
Gerakan deputy president Oh Tong Keong said the implementation of the new tax system next year would pose a burden to the people.
He said online shopping activities had become part of ordinary people's everyday life.
"With the Customs Department's announcement that beginning January next year, the purchase of LVG from abroad will be subjected to a sales tax of 10 per cent, this shows that the Pakatan Harapan (PH) government is not concerned with the hardship of the people, who are squeezed by economic pressure.
"This means that starting next year, the lives of ordinary people will become more painful with the introduction of a new taxation system by the unity government," he said today.
It was reported that Malaysia would start charging a 10 per cent sales tax on LVG sold online from Jan 1, next year.
Malaysia was supposed to impose the 10 per cent LVG tax on goods sold below RM500 online effective April 1, this year, under Budget 2022, but it was postponed indefinitely by the Customs Department in March this year.
The Customs Department defines LVG as all goods – excluding cigarettes, tobacco products, intoxicating liquors, electronic cigarettes, and preparation of a kind used for smoking – sold at a price not exceeding RM500 and brought into Malaysia by land, sea or air.
Those who sell LVG on an online platform or operate an online marketplace for the sale and purchase of LVG must register with the Customs Department if the total sale value of LVG brought into Malaysia exceeds RM500,000 in 12 months.
Separately, it also published guidelines on the implementation of LVG sales tax on its portal dated Nov 3, this year.
Oh also asked if the government was "bullying" the people with the new taxes.
Prior to this, the unity government had said that the rich would have to pay more taxes.
However, besides the service tax, the luxury goods tax and the capital gains tax, the Communications Minister had said that a 10 per cent sales tax would be imposed for online sales of LVG.
"This means that next year's new taxes will especially burden the B40 group.
"Is the government bullying the people?" he added.