Dear Malaysians, brace yourselves for upcoming tax adjustments, particularly if you're an avid online shopper.

Effective January 1, 2024, a 10% sales tax will be implemented on online purchases of goods below RM500. Termed as the low-value goods tax, this measure was initially introduced during the tabling of Budget 2020 in Parliament. The tax will be applicable to goods bought online and delivered to Malaysia by vendors registered with the finance ministry.

Originally slated for enforcement in April of the current year, the Federal Government Gazette officially approved the tax after the endorsement of Prime Minister and Minister of Finance, Datuk Seri Anwar Ibrahim.

It's important to note that this tax encompasses all online-sold goods, with the exception of cigarettes, e-cigarettes, vaping products, smoking pipes, tobacco products, and liquors, as highlighted by The Edge Malaysia.

Moreover, a comprehensive set of questions and answers released by the Royal Malaysian Customs Department clarifies that this tax doesn't include any other taxes, duties, or fees. Interestingly, various other countries, including Australia, Switzerland, New Zealand, Norway, and the United Kingdom, have already implemented a similar sales tax on low-value goods.