Friday 29 Mar 2024
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KUALA LUMPUR (Apr 29): Mobile prepaid reloads will continue to be sold with the GST added to the reload amount, said Malaysian Communications and Multimedia Malaysia (MCMC).

"For example, a RM10 reload would cost RM10.60 with the 6% Goods and Services Tax (GST) added," said MCMC chairman Datuk Seri Dr Halim Shafie in a statement today.

He also said a survey being conducted by the communications providers to assess if customers prefer lower reload values on which GST will be charged, is "almost completed".

“The (survey) results will be presented to the relevant authorities next week. The Royal Customs and Excise Department was agreeable to this survey being carried out before any further decisions are made," he added.

The survey is to assess whether customers prefer a RM10 reload to be RM10.60 (RM10 reload plus 6% GST added) or RM10 (RM9.43 reload plus 6% GST added).

“However, there has been some confusion in the market as to whether prepaid reloads will be back to pre-GST rates from May 1. Unfortunately, it will be almost impossible for the service providers to implement the required changes in the next two days," said Halim.

"Secondly, the results of the survey are not yet available and it may be premature to make any decisions at this point in time,” he added.

Halim also said the difficulty in reverting back to the pre-GST arrangements are due to the complexities in reconfiguring the systems, not only on the part of the service providers, but also on third party agents such as financial institutions, electronic payment providers, super markets, petrol stations and all other sales agents totaling approximately 30,000 parties. 

"The cost of doing this will be significant on the service providers as well as the third party agents. In addition, new stocks of prepaid cards need to be produced and distributed nationwide. 

“These costs should also be given careful consideration in coming to a final decision,” said Halim.
 

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