BERLIN, Aug. 1 (Xinhua) -- German government proposed on Wednesday a new law to oblige online retail platforms like Amazon and eBay to collect sales tax for transactions.

The result could be a boost of up to several hundred million euros to state coffers each year, German news agency dpa reported.

"We're ending the illegal practice of some online marketplaces of evading sales tax and thereby unfairly putting themselves at an advantage," German Finance Minister Olaf Scholz said.

Scholz believed it is a step closer to ensuring "fair competition between domestic and foreign sellers."

Online retail platforms could be held legally responsible in Germany for sales tax left unpaid by their users, according to the new law, which still need to be approved and might come into effect in 2019.