In a press conference held earlier today, the Communications and Multimedia Ministry has agreed that the Goods and Services Tax (GST) imposed on prepaid reloads will be based on usage, instead of the current additional charge.
According to Datuk Seri Ahmad Shabery Cheek, the prices of prepaid reloads will revert to pre-GST rates. For example, a RM10 reload will yield RM10 of credit, instead of an additional RM0.60 GST imposed. On the other hand, GST will be imposed based on usage. Datuk Seri Shabery added:
The government views this as a fair way as the government does not collect taxes before the service is used.
All local telcos are expected to comply with the new usage-based formula for GST charges within the next six months, giving the companies ample time to prepare their respective back-end procedures.
Until this new method is in place, all prepaid reloads will continue with the current method, where the 6% tax is imposed upon payment – a RM10 reload will cost RM10.60 to buy.
In addition, the government has requested all telcos to reduce their rates, including calls, SMS and mobile Internet, in order to “balance the effects of GST”. It also urged telcos to look into offering affordable packages to target markets, such as students.
The full press conference, which lasts less than three minutes, can be viewed in the official video from the Department of Information:
(Source: The Malay Mail)