Prepaid reload cards may revert to pre-GST prices in May


  • Nation
  • Friday, 10 Apr 2015

PUTRAJAYA: The prices of mobile prepaid reload cards could revert to those before the Goods and Services Tax by next month.

Customs Department GST director Datuk Subromaniam Tholasy said the matter was still being finalised with the country’s telecommunication companies, adding that the Government was “hopeful”.

“The Deputy Finance Minister II (Datuk Ahmad Maslan) has chaired a meeting with the telco chiefs and discussed reverting to the old prices for prepaid top-up cards.

“We have expressed our stance to the telcos.

“However, they asked for a month to adjust the prices because the process is not that simple and it takes time.

“Next week, the Customs director-general will meet the telco chiefs again for further discussion,” Subromaniam said at a joint press conference with the Domestic Trade, Cooperatives and Consumerism Ministry officials here yesterday.

Previously, the telcos had been absorbing the Sales and Services Tax (SST) – which was replaced by the GST – which was also rated at 6%.

However, after April 1, telcos went on to charge the GST on top of the reload card prices.

After a meeting between government officials and telcos, it was decided that the companies would be allowed to temporarily impose the GST on top of the prices – with additional talk time for customers – until a new solution was found.

“For the time being, consumers will have to pay the extra 6%.

“But they will get additional talk time.

“Whatever decision we come to, I can assure consumers that they will not lose out either way,” said Subromaniam.

The Customs Department, said Subromaniam, had so far collected RM259mil in GST revenue since April 1 from imported goods.

However, not all of the amount will go into the Government’s coffers as importers are expected to file for input tax claims.

“As for the GST collected from the purchases of goods or payment for service, this will only be declared at the end of every month,” Subromaniam said.


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