KUALA LUMPUR, Nov 25 — Malaysia collected RM476 million from the Low Value Goods (LVG) tax and RM1.62 billion from the Service Tax on Digital Services (STODS) in 2024, Second Finance Minister Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat today.

He said figures show the government is now capturing revenue from overseas online sellers and foreign digital platforms that previously operated without paying local taxes, unlike Malaysian businesses that are subject to SST and strict compliance rules.

The LVG of 10 per cent on imported goods below RM500 in 2024 was RM476 million. 

The STODS for 2021 was RM802 million, 2022 RM999 million, 2023 RM1.15 billion and RM1.62 billion in 2024.

“People should no longer see imported goods as cheaper just because they avoided sales tax in the past. Foreign digital services like Netflix, Apple, Microsoft and Google must now register with customs and pay the same 6 per cent service tax that local providers have been paying.

“STODS creates a level playing field between local digital service companies and foreign platforms that previously operated without paying service tax,” Amir Hamzah said.

But Muar MP Syed Saddiq Syed Abdul Rahman suggested that those foreign tech giants could escape from paying taxes in Malaysia by making large political donations as the Finance Ministry held broad powers that enabled them to grant tax exemptions.

“Young people are barred from travel over small unpaid PTPTN loans but big corporations can get tax waivers with one signature,” he said, using the Malay abbreviation to refer to the National Higher Education Fund.

The backbencher called for annual public disclosures of beneficiaries.

Defending the exemption mechanisme, Amir Hamzah said incentives are only granted when they benefit national investments and must go through a committee.

“Those exemptions aren’t arbitrary, they are targeted to attract investment and keep Malaysia competitive.