But prices are increasing…Įven before this tax announcement, video streaming provider, Netflix, is reported to increase its subscription plans beginning next month. For some services such as Spotify, Malaysians are currently paying a much lower rate of RM14.90 per month for ad-free Spotify Premium while those in the US are paying US$9.99 (about RM40.93) per month. It isn’t clear how this would impact local subscription.
“This cooperation enables us to take legal action against foreign companies which refuse to pay the service tax,” he said. This is not a new tax, it’s just having the scopes extended to providers in other countries,” he said.Īccording to Amiruddin, the Malaysian government has the power to enforce the law if the service providers are overseas as there is a government-to-government (GTG) cooperation among countries under the Organisation for Economic Cooperation and Development (OECD).
“It’s not fair if only the local digital service providers had to pay the tax. Local digital service providers are required to pay the tax and to extend this to providers that are based in other countries would level the playing field.
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