PUTRAJAYA: Telecommunication companies are allowed to impose the 6% Goods and Services Tax on the prepaid top-up in lieu of additional talk time.
“A meeting was held with the chief executives of all the telco companies this morning and a decision was made," Customs GST director Datuk Subromaniam Tholasy said.
“The telcos have two choices, either maintain the prepaid reload card prices with the 6% GST absorbed, or to charge the 6% on top of the reload card price but give consumers additional airtime.
“They have agreed to the latter and they even said for a reload costing RM10.60, the consumers will get up to RM1 additional airtime. This is good news for consumers,” Sobramaniam told a press conference at the Ministry of Finance here Thursday.
The announcement came a day after Sobramaniam said prepaid reload cards will remain at the same price with the GST absorbed into it.
Sobramaniam said the decision "is temporary solution” for the next three months and the department and telcos will meet again to discuss a permanent solution.
“This is the best solution for the time being. The Customs director-general will meet with telcos again within the three months and decide whether to continue with this solution, or even reduce the price,” said Sobramaniam.
“A meeting was held with the chief executives of all the telco companies this morning and a decision was made," Customs GST director Datuk Subromaniam Tholasy said.
“The telcos have two choices, either maintain the prepaid reload card prices with the 6% GST absorbed, or to charge the 6% on top of the reload card price but give consumers additional airtime.
“They have agreed to the latter and they even said for a reload costing RM10.60, the consumers will get up to RM1 additional airtime. This is good news for consumers,” Sobramaniam told a press conference at the Ministry of Finance here Thursday.
The announcement came a day after Sobramaniam said prepaid reload cards will remain at the same price with the GST absorbed into it.
Sobramaniam said the decision "is temporary solution” for the next three months and the department and telcos will meet again to discuss a permanent solution.
“This is the best solution for the time being. The Customs director-general will meet with telcos again within the three months and decide whether to continue with this solution, or even reduce the price,” said Sobramaniam.
Read: Customs Dept: Those who are mistakenly taxed can claim refund with receipts
Shabery: Telcos to reduce broadband service charges
Ahmad Maslan: 40% of GST complaints about telcos charging 6%
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