Government collects more than RM400 million in taxes on digital services



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KUALA LUMPUR: So far, the government has collected RM 428.07 million from digital service providers since applying the Digital Services Tax earlier this year, said Deputy Finance Minister I Datuk Abd Rahim Bakri.

He said the tax was imposed on, among others, Netflix, Amazon, ads on social media platforms like Facebook and Instagram, as well as apps and games on smartphones.

“This is a new source of income for the country and it will be improved in the future. This collection is not only imposed on local digital service providers, but we have also initiated efforts to impose the tax on foreign digital service providers, ”he added.

He said this in closing the debate on the 2020 Service Tax Bill (Amendment) in the Dewan Negara today.

The issue of the tax on digital services was raised by Senator N. Balasubramaniam.

On the refund of the goods and services tax (GST), Abd Rahim said that most of the claims had been refunded, with around 1.87 billion ringgit still unpaid, as there were some issues to be resolved.

Other than that, he said, the Royal Malaysian Customs Department (JKDM) always conducted field audits in an effort to ensure that taxpayers pay the proper amount of tax and prevent leakage.

The method also ensures that the government can collect the actual amount of the tax, he added. – Called



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