Taxing the success of e-commerce
Calyn Yap | 16 Jun 2017 00:30

E-COMMERCE is big business. By 2020, it is expected to be worth RM114 bil from just RM68.3 bil in 2015. And this increase will further add to the tax revenue.

In the meantime, the authorities can potentially net billions in additional revenue by next year through taxing a wider range of digital businesses.

For the purpose of this article, digital business including e-commerce, online advertising and Cloud computing, among others.

The Customs Department is expected to earn RM2 bil in GST alone, while the Inland Revenue Board (IRB) could collect another RM3 bil in additional taxes.

This is based on an estimated additional e-commerce revenue of RM33 bil, where half is taxable.