Thursday 25 Apr 2024
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KUALA LUMPUR (Apr 1): Postpaid and prepaid telecommunications services remain unchanged despite the goods and services tax (GST) kicking off today, but other items and services will come under the consumption tax.

The Communications and Multimedia Consumer Forum of Malaysia (CFM) said the 6% GST replaces the old service tax, which was also charged at 6% on prepaid services.

For prepaid services, the prices and corresponding airtime for SIM packs, starter packs and reload coupons were also maintained, it said.

International roaming services by all Malaysian telecommunication companies are classified as zero-rated supply, meaning they will not be subjected to GST.

However, the consumption tax will be applied on mobile devices such as tablets and smartphones, certain contents, applications, and other telecommunications products and services.

"Mobile communications services is a standard rated item under the Goods and Services Tax (GST Act) 2014, and since mobile communications services are neither GST-exempt nor zero-rated items, the industry is required to charge 6% GST charges.

"The 6% GST is collected on behalf of the government in accordance with the GST law and guidelines for all goods and services consumed.

"As a supply and demand forum promoting a self-regulating industry, CFM is confident that all players in the communications and multimedia sector will ensure the smooth and efficient implementation of GST on their goods and services," CFM said in a statement today.

On their part and through the General Consumer Code of Practice for the Communications and Multimedia Industry (GCC), CFM said it would continue to ensure the interests and rights of the consumers in the telecommunications and multimedia sector were looked after.

It said consumers can also go to its website www.cfm.my and Facebook address consumer.forum.malaysia to view the set of frequently asked questions (FAQ) on the GST implementation.

 

 

 

 

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