BANGKOK: Malaysia has proposed the introduction of an e-commerce tax in Asean, as online businesses in the region are thriving, and would contribute significantly to the tax revenues of each government.
Prime Minister Tun Dr Mahathir Mohamad said that their success, however, has come at the expense of traditional, direct-selling businesses.
“For example, Amazon sells books and (many) book stores have had to cease operations as books can be purchased online.
"Since our direct selling businesses are affected, (we) collect less tax.
“(Meanwhile), online businesses (make profits in) their countries while (the governments) gain nothing,” he told reporters following the 34th Asean Summit plenary session with Asean leaders on Saturday.
Dr Mahathir added that governments are unclear on how much profit online businesses are making, and taxation would help determine that.
“(Asean leaders) propose to collect at least half of their profits (through an e-commerce tax)," he said.
On the Rohingya crisis, the Prime Minister said that although the topic was not raised during the session, all quarters remain focused on the matter.
"We did not discuss it… maybe (Asean members) do not want to (create tensions) with Myanmar…. but everyone is (focused on) the issue.
“Rohingya refugees should be included in consultation plans (to send them back to Myanmar. However, the previous proposal) was made without referring to them.
"Are they prepared to return home? Many still fear for their safety once they return to Myanmar," he said.
It was reported that efforts to repatriate Rohingya refugees from Bangladesh to Myanmar have hit a wall, as no Rohingya has elected to return home due to security fears.
Dr Mahathir had earlier attended a Gala Dinner hosted by Thai Premier Prayuth Chan-ocha for Asean leaders and Secretaries General.