Tax on digital businesses is fair - association

The government's proposal to impose a tax on digital business platform such as Uber, Airbnb and Alibaba is fair and timely, the Terengganu Bumiputera Youth Entrepreneurs Association (PATUT) said.

President Amir Long said if implemented, the tax regime would help create more conducive business environment in the country.

"Business platforms, which are based in several countries, are raking in billion of ringgit in profits annually, yet no taxes are imposed on them.

"It is unfair, especially to local players, who are competing in the same industry and yet have to pay taxes if their turnover is more than RM500,000 a year," he said in a statement.

PATUT also lauded the government's stand for not imposing new taxes on small businesses.

"This will encourage online entrepreneurs to work even harder at expanding their businesses and to register with the Companies Commission of Malaysia to become legal entities, which will help in addressing cheating cases," Amir said.

However, PATUT hoped that the government would undertake a holistic study before implementing the new policy, especially if it involved legal, technology capabilities and regional economic environment, he added.