• Little effect on consumers

Of course with all said and done, the group likely to be most devastated by the announcement of taxes on digital services would be ourselves, the consumers as we fear that the tax may raise prices for the digital entertainment and services that have become so ingrained in our lives.

But should the digital tax be able to “level the playing field” as Chew believes, analysts have also pointed out there is also the potential that the tax may spur both foreign and local companies to provide better services and offers to its users as competition heightens within the market.

Also weighing in on the effect the tax would have on consumers, KPMG Tax Services Sdn Bhd’s (KPMG Tax Services) executive director of Indirect Tax Dany Oon said he believed the tax would have little effect on the general public as free content can easily be found online.

“Do we really buy that much of online content? Not goods, but services, apps, music, videos, subscriptions, do we really pay for these?” he questioned,

noting that even if users pay for such services, they will not really pay that much.

“I think the impact towards individuals, from an individual perspective, personally, I don’t think it is that much of an effect,” he sounded off during a KPMG Tax and Business Seminar 2018 held in Kuching.