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Streaming companies are more likely to improve the worth of their subscriptions come March as a gross sales and repair tax (SST) hike goes into impact. This comes after the customs division introduced on MySToDS that the service tax price levied on digital companies can be elevated from 6% to eight% beginning 1 March 2024.
The two% increment was introduced by the federal government final October throughout the Prime Minister’s tabling of Funds 2024. Unsurprisingly, this additionally applies to the prevailing digital service tax. Nevertheless, sure classes similar to meals and drinks in addition to telecommunication can be exempted from the hike, remaining at 6%.
Concerning this modification that’s about to happen, Heart for Market Schooling CEO Carmelo Ferlito stated that he expects costs for streaming and different digital companies to extend. That is probably as a result of it could be too difficult for giant international corporations to soak up taxes to maintain their choices at a sure worth level.
The digital service tax was carried out in 2020 and in its first 12 months, the federal government had collected RM428 million in income. Secretary basic of treasury Johan Mahmood Merican said that the federal government expects to gather a further RM3 billion from the SST hike. As for which corporations can be affected, the customs division revealed again in 2020 that there are at the least 126 registered international digital service suppliers, together with Google, Netflix, Spotify, and Airbnb.
(Supply: FMT)
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