The Malaysia Retail Chain Association (MRCA) has proposed that the government implement stricter policies and equalise surcharges on cross-border e-commerce transactions, including the stricter enforcement of the sales tax on low-value goods (LVG), to secure national revenue.
The association said local brick-and-mortar retailers continue to face substantial compliance disparities compared to untaxed or under-taxed foreign e-commerce platforms offering ultra-low prices.
"This structural imbalance not only threatens local enterprises but results in significant tax base erosion for the nation,” MRCA said in a statement on its Budget 2027 wishlist today.
It also called for stringent regulatory controls to mitigate the proliferation of counterfeit and inferior goods on e-commerce platforms, thereby protecting consumer safety, preserving quality standards, and defending the intellectual property of legitimate brand owners. - TheStar