The purchase of goods via the Internet, or e-commerce, worth RM1,200 and below, will be exempted from paying tax in the Digital Free Trade Zone (DFTZ).

Second International Trade and Industry Minister, Datuk Seri Ong Ka Chuan, said currently goods worth RM500 and below purchased through e-commerce were not subjected to any tax.

"This facility aims to reduce tax barriers to enable Malaysians to play an active role in e-commerce not only in the country but also at the international level," he said.

Ong said this to reporters after attending the Chinese New Year celebration organised by Perak Wanita MCA here today.

Also present was Wanita Chief, Datuk Heng Seai Kie.

At present, he said, there was no policy in which goods worth RM500 and below would not be taxable.

Under the DFTZ, the amount would be raised from RM500 to RM1,200 in the initial stage, he said.

Meanwhile, Ong said, Prime Minister Datuk Seri Najib Tun Razak would launch the DFTZ next month where Alibaba Group Chairman Jack Ma will be appointed digital economy adviser to the government. - BERNAMA