Taxes and duties on online shopping, 3-in-1 coffee, vape liquid
BUDGET 2022 | The government has announced several taxes and duties that will impact retailers and consumers.
This includes a sales tax on foreign goods sold by online traders that are transported via air.
There will also be a service tax on delivery services, including those by...
BUDGET 2022 | The government has announced several taxes and duties that will impact retailers and consumers.
This includes a sales tax on foreign goods sold by online traders that are transported via air.
There will also be a service tax on delivery services, including those by e-commerce platforms. However, this does not apply to food and beverage deliveries and logistics services.
This was announced by Finance Minister Tengku Zafrul Abdul Aziz in his Budget 2022 speech today.
The government will also impose excise duties on pre-mixed chocolate, cocoa, malt, coffee and tea drinks. This would likely include 3-in-1 coffee drinks.
Excise duties will also be imposed on vape and e-cigarette liquids and gels that contain nicotine.
Those living in Malaysia but are earning income from abroad will also be subject to income tax starting Jan 1, 2022.
It's not all bad news for consumers though.
The RM2,500 tax relief specific for smartphones, computers and tablets will be extended until Dec 31, 2022.
Youths aged 18 to 20 as well as full-time tertiary students will also be given a one-off RM150 e-wallet top-up.
Meanwhile, for big companies with a paid-up capital of RM2.5 million or more, the corporate tax on taxable income for the first RM100 million is maintained at 24 percent.
However, any taxable income after RM100 million will be subject to a 33 percent "prosperity tax".
Tengku Zafrul said the prosperity tax is aimed at companies that have made big profits during the Covid-19 pandemic and it will be used to help fund the public healthcare system.
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