3-1-2024 (KUALA LUMPUR) Malaysians accustomed to the convenience of online shopping for overseas products are facing a reevaluation of their choices, given the substantial surge in prices following the implementation of the low-value goods (LVG) tax on January 1.
An investigation by The Star reveals that the prices of LVG below RM500 from international sellers on various ecommerce platforms have experienced a general increase ranging from RM2 to RM20, depending on the specific product. Some sellers have gone further, opting to double the original price.
Personal trainer Jamie Kng expressed her astonishment after discovering that a quick-dry top she had previously purchased online for RM19.94, inclusive of shipping fees and discounts, is now priced at RM39.60.
“The price jump is so significant that I am contemplating whether I should buy a second piece in a different colour,” she remarked.
Dr Ling, a senior lecturer, highlighted the impact on certain products, stating that he now pays nearly 50% more for a windshield automatic umbrella for his wife’s new car. The item, which used to cost less than RM50 inclusive of shipping and vouchers, now stands at RM72.
Valerie Lanjuran, a 25-year-old executive from Petaling Jaya, noted a slight increase in the prices of most items, averaging around RM5 or less, depending on the purchase. However, she clarified that this increase is reflected only on the product’s listing page and not in the payment details.
While acknowledging the additional cost, Lanjuran believes it won’t significantly impact her budget as long as such purchases are occasional. She pointed out the abundance of online options, making it easy for buyers to compare prices. Additionally, she suggested that the LVG tax might stimulate sales for local physical traders.
Jenny Lee, a 30-year-old yoga instructor and frequent online shopper, expressed concerns about the additional expenses. Lee, who spends between RM200 and RM300 monthly on online shopping, estimated an extra cost of about RM50 per month due to the LVG tax. However, she finds it acceptable as long as online items remain cheaper than those in physical stores.
Lee emphasized the appeal of brick-and-mortar shops where customers can physically inspect products, pointing out the risk of online purchases not meeting advertised quality.
Addressing the regulatory side, Federation of Malaysian Freight Forwarders president Datuk Tony Chia emphasized the responsibility on online sellers, both local and international, to register with the Customs Department. He explained that customs agents or brokers, including shipping providers like Poslaju, Yunda, and J&T, need to register to enforce the tax.
As of January 1, Malaysia has implemented a 10% sales tax on LVG imported from overseas and costing RM500 and below, when sold online.
