Prepaid reloads back to pre-GST rates from May 1


PUTRAJAYA: Telecommunication companies will revert to the old pricing for prepaid reloads from May 1.

Customs director-general Datuk Seri Khazali Ahmad said the telcos had been informed to revert to the rates before the implementation of the Goods and Services Tax (GST) on April 1.

This means that a RM10 top-up would cost RM10 instead of GST-inclusive RM10.60.

"We understand the problems affecting youngsters, who are the main prepaid users.

"Effective May 1, all telcos must revert to prices before April 1 where the price is inclusive of tax," he told a press conference.

Initially, the government announced that prices of reload cards would be maintained after the GST, as the tax replaces the Sales and Services Tax (SST) which is also rated at 6%.

Previously, the SST is absorbed into the price of reload cards.

After the GST kicked off on April 1, telcos went on to charge the 6% GST on top of the reload card price instead of absorbing it.

After a meeting between government officials and telco groups, it was decided that telcos would be allowed to impose the GST on top of the reload card price on a temporary basis until a new solution is found, but customers will also get additional talk time.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Johor polls: Puteri Wangsa victory a heavy trust to bear, says sole PKR winner Maszlee
Johor polls: Early GE16 unlikely after BN landslide win, says PAS
Man, 30, dies in Sandakan house fire
Fire breaks out at paper recycling factory in Shah Alam, 50 workers escape unharmed
Johor polls: BN victory reflects mandate for a stable, capable state govt, says Zambry
Johor polls: All 15 Bersama candidates lose their deposit, says Rafizi
Melaka floods: Rescue teams, volunteers, Klebang rep work through the night as floods hit residents
INTERACTIVE: Explore the Johor poll results here
Grateful for a second chance at life
Singapore-based workers take leave to vote

Others Also Read