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)
Not sure how they are going to charge GST on those 1 sen SMS…
1 cent become 2 cents, settled.
Telco happy, Government happy.
So, should we call them “Penipu Scammer”?
LPPL. End up they round up those 0.6c and end up with more.
Only thing they don’t charge gst is international roaming and call
Malaysian telcos already enjoy virtually free spectrum from the government and have the faaaatest operating profit margin(ard 45-50% for Digi and Maxis) in the world, apa lagi telco mau?
rakyat is not stupid. still 6% charged. if previously RM10 will get you 1000 worth of sms, now you will only get to send 943 sms. cheating? i think so. cheated? government doesn’t think so.
What a spin! Government and telcos thinking Prepaid users for suckers or what? Whichever way you look at it, GST is charged.
to all who voted for bend, thank you.
Who Vote This Tapir.. -_-
Telco never have problem even the implementation of GST, god dam it
Why our minister so stupid one. At the end also charge 6%, why not pay 6% on top of reload card. At the end, like other mentioned, round up and gov. and telco earn more. Idiot.
So let me get this straight:
Option 1: Pay RM 10.60, receive RM 10 credit
Option 2: Pay RM 10.00, receive RM 9.43 credit
Option 3: Pay RM 10.00, receive RM 10 credit, but phone and SMS use will include the 6% tax. (e.g. RM 0.12 per minute call is now RM 0.1272 per min)
I’m not a mathematical genuis like Nur Fitri, but doesn’t all options above point out that there’s still GST on prepaid services? So at the end of the day, there’ll be no exemption (or zero rated) in GST on prepaid.
*Please feel free to correct me if i’m mistaken*
Call rate: RM0.10 / min.
Call 1 minute: RM0.10 + GST 6% = RM0.106 –> round off to RM0.11
just like interbank transfer service charge RM0.10 + 6% = RM0.11
become 10% GST wtf
Yes, imagine RM100 top-up are all spent on RM0.10 call / sms…
The total GST charged in this example would be RM10…
I can see only one point on why they are implementing this:
1. to benefit people who top-up their phone, just to receive call or sms…
Ridiculous!
This is Ahmad Maslan explanation?
Different name for same animal?
telco want to earn, government also want to ear. die la consumers
con job
Consumer will has BIGGEST lost.
Imagine, if we reload (with GST) before the new plan take effect but didn’t finish the credit so it will carry forward to the month where new plan take effect.
Any call make with the new plan with previous credit will have to pay GST again!!! So it will be double TAX. What a ‘GOOD’ plan.
this all called “wayang” and running on long episode… but yet just wasting everyone time.
Ridiculous! … It becomes more expensive.