KUALA LUMPUR (Dec 2): Digital services tax (DST) recorded RM1.16 billion in collections from Jan 1 to Sept 30, 2024, while the low-value goods tax (LVGT) brought in RM300.7 million during the same period, the Ministry of Finance (MOF) said.

The ministry stated that the LVGT’s primary objective is not to generate significant revenue, but to safeguard the local business ecosystem.

"It ensures that low-value imported goods are taxed in the same way as locally traded goods," the MOF said in a written response on the Parliament’s website.

The statement was issued in response to a query from Datuk Seri Ismail Sabri Yaakob (BN-Bera), who sought details on revenue collected from new taxes introduced this year, including the LVGT, DST, capital gains tax (CGT) and high-value goods tax (HVGT).

The MOF clarified that CGT, which takes effect on March 1, 2024, has not yet yielded collections. "Actual figures will only be available from July 2025, after companies file their Income Tax Return Forms via e-filing for the current tax year," the ministry said.

Regarding the HVGT, the ministry noted that its implementation remains delayed as the government focuses on other fiscal reforms, such as the LVGT, adjustments to service tax rates and coverage, and diesel subsidy retargeting.

"The proposed HVGT will be reviewed alongside the planned expansion of the Sales and Services Tax (SST), as outlined in Budget 2025," the MOF added.

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