Lazada ready to embrace digital tax

Chief business officer Kevin Lee said Lazada Malaysia was working closely with the government on the digital tax.

KUALA LUMPUR: Lazada Malaysia says it will be ready to embrace digital tax, which the government is considering implementing.

Chief business officer Kevin Lee said Lazada Malaysia was working closely with the government on this matter.

"I think the government has taken many steps in the right direction and it is our responsibility as the leader of e-commerce in the country in Southeast Asia to not just sell but also drive the change behind the thinking, behind the policy.

"We are happy to be at the forefront of this and work closely with many agencies of the government," he said, when asked about Lazada’s level of readiness to face the new tax.

Under the proposed amended Service Tax Act 2018, any person outside Malaysia operating an online platform for buying and selling goods or providing services (whether or not such person provides any digital service), such as Lazada, would be affected by the digital tax.

The tax would also be imposed on various online services including software, music, video and digital advertising offered by Spotify, Netflix Inc and Amazon.com Inc.

Deputy Finance Minister Datuk Amiruddin Hamzah in April said foreign-registered digital service providers are required to register with the Royal Malaysian Customs Department for easier collection of the six per cent service tax beginning on Jan 1,2020. - Bernama