Quick Economic Update: “Why Malaysia’s Proposed LVG Tax Misses the Mark”

By Mohd Khairul Ramli

INSAP believes that this new tax called the Low Value Goods tax is punitive to the lower income groups as it applies only to imported to goods below RM500. This is presumably also an attempt to plug the tax leakage that is prevalent in the Online Market Place (OMP). On top of it, the process of collection is unclear hence, the roll- out plan and collection are not transparent thus, may be subjected to abuse.

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