KUALA LUMPUR: The 10 per cent sales tax on online purchases is only applicable to imported goods valued under RM500, said Communications Minister Fahmi Fadzil.

He said this is to enhance the competitiveness of local products which are not affected by the tax when bought online.

"It only applies to products imported from overseas that are sold online in Malaysia. Products produced in the country are not affected. So, I hope this will clear up misunderstandings among the public about the tax.

"We can refer to the official website of the Customs Department for more detailed information and from time to time we will carry out monitoring to make sure the people, especially sellers and buyers who carry out online transactions, really understand (about the tax)," he said.

Fahmi, who is the unity government spokesperson, told a press conference after launching the Reuse, Educate, Nurture and Empower with Waste (Renew) programme at Dataran Sri Angkasa Jaya here on Sunday.