KUALA LUMPUR (Apr 2): The government will not hesitate to take legal action against five telecommunication companies in the country if they insist on overcharging consumers on their prepaid reload coupons.

"There is some misunderstanding with telcos, there should be no changes to the prices; [the prices] should remain the same.

"If the price for the reload [coupons] are RM10 each, these telcos are supposed to do away with the 6% SST (Sales and Service Tax) first and only later charge the 6% GST (Goods and Services Tax).

"So if it is RM10 it will remain RM10 and not RM10.60. [The] same goes for the RM5 top up, it should not be RM5.30," Deputy Finance Minister Datuk Ahmad Maslan told reporters at parliament lobby today.

Ahmad said the five telcos included Maxis, Celcom, U-Mobile and Digi, pointing out that these companies will be hauled to court if they insist on passing on higher charges to consumers.

Ahmad had previously reassured consumers that the prices of prepaid reload coupons will be unchanged, and that the government will be meeting with the telecommunications companies.

“If they are stubborn, we will bring them to court. This will be the first anti-profiteering case if they don’t comply with the order from Customs and KPDNKK,” he added.

He said the price of the reloads should remain unchanged as the GST merely replaces the SST.

It was reported yesterday that several mobile phone carriers increased the price of their prepaid reload coupons yesterday when the GST kicked in.

Ahmad said those found guilty can charged under the Price Control and Anti-Profiteering Act 2011 or Trade Descriptions Act 1972.

The punishment for individuals is RM100,000 fine or three years’ jail, or both; companies can be fined up to RM500,000 for the first offence and RM1 million for subsequent offences.