Telcos to provide GST rebates to Malaysian prepaid users for one year

PETALING JAYA: From Friday, Malaysians will be receiving a rebate on the Goods and Services Tax (GST) charged on their mobile prepaid reloads for one year, an industry body announced.

In a statement, the Communications and Multimedia Consumer Forum of Malaysia (CFM) said telecommunication companies would be giving rebates equivalent to the 6% (GST) imposed on prepaid users who are Malaysian nationals from Jan 1 to Dec 31, 2016.

Only Malaysian nationals registered on a prepaid telephone service using their MyKad, military or police identity card, will be eligible for the GST rebate.

Giving the example of a RM10 reload, it said users would initially get an airtime of RM9.43, with the 6% GST deducted from the top-up.

The 57 sen rebate would then be credited by respective telcos directly into users' prepaid account within 24 hours, said the CFM.

"The GST paid by customers will be collected and remitted to (the) Customs (Department), in accordance with the GST law and guidelines for all goods and services consumed," it said.

The CFM also said that after Jan 1, old prepaid reload stocks must be sold at the original price and that service providers will be given 15 days to ensure that all their dealers and agents comply with the direction.

"Any decision to extend the GST rebate will be made known from time to time," the CFM said.

Finance Minister Datuk Seri Najib Tun Razak, when tabling Budget 2016 in Parliament in October, had announced the rebate, saying the Government realised that many mobile phone users especially youths, depended on the prepaid services.

An FAQ on the GST rebate is available on the CFM website.