A DAP parliamentarian has called on the government to allow legal number forecast operators (NFOs) to operate online in a bid to tackle tax leakages that have become a pressing issue.
Bukit Bintang MP Fong Kui Lun said this strategy will place legal NFOs as key players in the fight against the shadow economy which has resulted in tax leakages.
“This will not only enhance tax collection but also allow for effective market regulation.
“Such a move will substantially diminish the shadow economy's influence and optimise our tax revenue collection,” Fong said in a statement today.
He stressed that the NFO gaming sector has been particularly affected, with illegal operators significantly surpassing legal businesses and evading taxes.
He then cited reports that allegedly indicated that illegal 4D betting syndicates - primarily operating online - are generating revenue of at least RM18 billion annually.
“This is double the revenue of legal operators, with none of it contributing to national taxes.
“Consequently, Malaysia is deprived of approximately RM5 billion in taxes each year, funds that are essential for public services and development projects,” he stressed.
“These same syndicates are operating with impunity, engaging in activities such as money laundering, illegal money lending, and online scams,” he added.
Further, he said during the peak of the Covid-19 pandemic and with the closure of 4D outlets, illegal operators took advantage of the situation and offered online betting, causing them to gain considerable market share.
“This not only leads to a loss of revenue for legal operators but also results in significant tax resources being underutilised,” he said.
Meanwhile, he also highlighted the necessity for legislative reforms to address illegal online operators, advocating for stricter penalties and improved monitoring.
“The aim is to foster a safer and more regulated environment for NFO gaming, promoting fairness and responsible practices.
“The time has come to align our laws with today’s digital reality and take decisive action to protect our economy,” he added. - Mkini
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