KUALA LUMPUR (Sept 7): My E.G. Services Bhd (MyEG) shares rose as much as five sen or 3% to RM1.70 so far today, following news the government is studying the possibility of sales and services tax (SST) exemption for e-commerce and online businesses.
At 11:18pm, shares of electronic government services specialist MyEG pared gains at RM1.65, with some 21 million shares traded. CIMB Research wrote in a recent note that CIMB had increased its MyEG share target price to RM1.72, from RM1.47.
Yesterday, theedgemarkets.com, quoting Finance Minister Lim Guan Eng, reported the government is studying the definition of e-commerce and online businesses to see if they qualify for exemption under the SST regime, for supporting the growth of the country's digital economy.
"We have to see the definition of online business. If you look at information technology (IT) services, for example — it should face a 6% service tax, but we decided to give a leeway.
"For instance, cloud service providers — under IT services — they will be charged 6%, but because it is a cloud service provider [and] rides on the server of telecommunication providers, we don't impose the tax at the business-to-business level to avoid multiple taxation," Lim said.