Telcos should not be charging GST: Hassan
Published on: Thursday, April 02, 2015
Kota Kinabalu: Prices of telco reload top-ups remain unchanged with the six per cent Service Tax being replaced by the six per cent Goods and Services Tax (GST) from April 1. The Service Tax was absorbed into the prices of top-ups. However, the implementation of the GST saw telcos increasing their prices an additional six per cent on Wednesday. The same increases are charged to prepaid users who reload their credits via online banking.
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Domestic Trade, Co-operatives and Consumer Affairs Minister Datuk Seri Hassan Malek believed there had been some mix-up on the telco prepaid charges, saying he will bring the matter to Putrajaya. "As far as I know, telcos should not be charging the GST, because the tax should have been absorbed into the price," he said. Hassan Malek found out the increases after visiting a local telco shop, here. "I will bring the matter to Putrajaya and to the Customs Department to be resolved. I fear the increases do not only happen in Sabah. It could be everywhere," he said.
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He advised those who already bought top-ups to retain their receipts to claim their losses should there be any reimbursements. "I will try and solve this problem, give me time," he added.
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In a related development, the Communications and Multimedia Consumer Forum of Malaysia announced the "prepaid services, the prices and corresponding airtime for SIM Packs, starter packs and reload coupons are maintained." It also noted that the government has classified international roaming services provided by all Malaysian telecommunication companies as zero-rated supply."As such, all international roaming services will not be subjected to GST."Stay up-to-date by following Daily Express’s Telegram channel.
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