KUALA LUMPUR, Feb 18 – Putrajaya has collected RM476.1 million from the Low-Value Goods (LVG) tax in 2024, following its implementation on January 1 that year, said the Finance Ministry in a written Parliamentary reply.
The LVG tax applies to imported goods valued at RM500 or less, purchased online and delivered via air courier. The ministry said 63 sellers from 15 countries have registered under the tax framework.
Meanwhile, the Service Tax on Digital Services, which was introduced in 2020, generated RM1.6 billion in revenue in 2024.
The tax applies to digital services provided by foreign registered businesses to Malaysian consumers, with 464 foreign entities from 29 countries currently registered under the scheme.
On the Capital Gains Tax (CGT), which came into effect on March 1, 2024, the ministry said revenue figures will only be available from July 1, 2025.
The CGT applies to the disposal of unlisted company shares and allows taxpayers to choose between a 10 per cent tax on net gains or a 2 per cent tax on gross sales for shares acquired before March 1, 2024.
The ministry was responding to Datuk Seri Ismail Sabri Yaakob (Barisan Nasional-Bera), who had asked for the amount of revenue received, and whether Putrajaya will reintroduce the Goods and Services Tax (GST).
The ministry clarified that the government has no immediate plans for the GST, citing the long implementation period required.
Instead, it will continue refining the existing Sales and Service Tax (SST), which has been in use for over 40 years.
“Overall, despite the challenges arising from the implementation of improvements to the national taxation system in Budget 2025, the additional tax revenue collected will be returned to the people in various forms, such as service enhancements and government assistance.
“The government will continue to balance this objective by considering the need to protect and minimise the impact on the public, industries, and businesses,” it said.
