By Sherilyn Pang
SHAH ALAM, Jan 19 — It is still too early to tax online retailers as they are only starting to grow their businesses on the digital platform, says Selangor Menteri Besar Dato’ Seri Amirudin Shari.
Speaking during a virtual press conference to announce the results of the Selangor e-Bazar 11.11 Mega Sales Campaign yesterday, Amirudin said the digital-transitioning process for entrepreneurs at the state level is still in its growth phase and ensuring the sector continues to grow more quickly is imperative.
“We are in the process of growing the business so I think it is too early for us to tax them or to obtain any shares from them now,” Amirudin said in reference to the tax policy for online retailers.
“It is not entirely under the state government’s power or jurisdiction (to decide). We also have to deal with the Federal institution but we have to discuss how to make sure businesses in this sector continue to grow,” he added.
Amirudin did not discount the state government’s interest to receive income from online businesses in the future but it is a matter that requires proper discussion.
“There is no issue yet for the tax but in future, we definitely have to discuss with relevant organisations to make sure that the state can also get some income from there. It is a long discussion that needs to be done properly,” he said.
“It is the future business and the future is now,” he added.
The recent Selangor E-Bazar 11.11 Mega Sales Campaign recorded RM1.04 billion in ripple effect to the state economy which includes RM32.06 million in direct sales following the state government’s RM2 million injection into the campaign in the form of promotional vouchers to spur online sales activity on both Shopee and Lazada.
Among the most popular items sought after by consumers on the platforms were mobile phones, household appliances as well as health and beauty items.
