Tax for Uber and Grabcar service platform?

The Finance Ministry has no plans to tax Uber and Grabcar drivers but is looking at taxation on the service platform.

Second Finance Minister Datuk Johari Abdul Ghani said this was because the Uber and Grabcar application platform raked in millions of ringgit in profits from their operations in the country.

"We (ministry) will not imposed tax on the taxi drivers but will see how to levy tax on the platform (Uber and Grabcar)...because the drivers also have to pay 25 per cent (of revenue) to the platfrom," he said.

He said this to reporters after launching the 1Malaysia Community programme and Jalur Gemilang Tour 2016 for Titiwangsa, Setiawangsa and Wangsa Maju here, today.

Johari said his ministry was considering to have the platform registered as a local company to ensure that the profits made by Uber and Grabcar could be made known.

"We are thinking of making it compulsory for the platform to register...so we can see how much they make and from here how much tax they should pay," he added.

This was to ensure an equitable system for the drivers as well as those who provided the service platform for Uber and Grabcar, he said.

Johari said the ministry had no barriers to assist taxi drivers to partake and enjoy in the nation's economic growth even though having to compete with the digital sharing economy like Uber and Grabcar.

"Malaysia practises an open economy, hence we cannot stop the digital economy from coming into our market...like Uber and Grabcar, we cannot stop them as the system is adopted by the whole world.

"But we must focus on how to take care of the welfare of the existing taxi drivers. The government is looking at the incentives that could help the drivers including increasing their income and in terms of financing their cars," he added.