The sales tax on imported low-value goods (LVG) sold online, which will take effect on Jan 1, 2024, is aimed at levelling the playing field for local businesses, according to the Finance Ministry.

It said there is a common global practice not to impose sales tax and import duty on imports below a “de minimis” (minimal) value, which was set at RM500 for Malaysia, to facilitate ease of customs clearance for postal and courier shipments.

“With the proliferation in online retail, this created an unfair advantage for...