TaoBao users in Malaysia will have to pay a 10% SST sales tax when purchasing items from the platform

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If you frequently use TaoBao, this news might surprise you. Recently, TaoBao has introduced a 10% SST sales tax to Malaysian users. Perhaps, this is following the Malaysian government announcing that it will levy a 10% sales tax on purchases of goods below RM500 starting this year.

For instance, if you buy a piece of clothing worth RM20 on Taobao today, you will need to pay an extra RM2 of SST sales tax when you pay. Perhaps this measure is introduced to encourage the growth of local businesses. Interestingly, it could also increase the government’s tax revenue by RM200 million per year.

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For those who like to shop online, they will need to pay additional fees when shopping for items below RM500 in the future. Notably, this change is not exclusive to TaoBao. In fact, platforms such as Shopee (for purchasing goods from foreign buyers) and Shein have also begun to charge a 10% sales tax.

We have yet to confirm further details on this subject. So, Malaysians might have to deal with the price hike for now. Hopefully, TaoBao will introduce more deals or great vouchers to remedy this.


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