KUALA LUMPUR, September 11 — Deputy Finance Minister Lim Hui Ying announced that the government will expand the scope of the Sales and Service Tax (SST) and retain the low-value goods tax (LVGT) to maintain stable national revenue and ensure fair competition.
She explained that selected discretionary items will be taxed at rates of five or 10 per cent from July 1, 2025, while the LVGT, which came into effect in January 2024, remains crucial in protecting local traders against unfair competition from untaxed foreign online sellers.
Lim noted that the LVGT generated RM476 million in 2024, highlighting its effectiveness in narrowing the tax gap while supporting domestic businesses. She acknowledged concerns about price impacts but emphasized that the policy’s primary goal is to safeguard local merchants and create a level playing field in e-commerce.
The deputy minister assured that extensive stakeholder engagement underpins all tax decisions, and adjustments will be made if necessary to protect public interests.
