The Ministry of Finance (MOF) revealed that the Digital Service Tax raked in RM1.6 billion in revenue in 2024. MOF announced the figure in a written Parliamentary reply yesterday (18 February) to a question by Bera MP and former Prime Minister Datuk Seri Ismail Sabri Yaakob.
Announced in 2019 and implemented starting 1 January 2025, the Digital Service Tax, as the name implies, is a tax imposed on digital services in our country. These include Netflix, Spotify, Steam and more, with the tax being 8 per cent since March 2024.
Specifically, the tax applies to digital services provided by foreign registered businesses to Malaysian consumers. Currently, 464 foreign entities from 29 countries are registered under the scheme.
Besides that, MOF also revealed that RM476.1 million was collected from the Low-Value Goods (LVG) tax in 2024. This tax applies to imported goods valued at RM500 or less that are purchased online and delivered via air courier.
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