Prepaid reload: To add or deduct GST?

  • TECH
  • Friday, 03 Apr 2015

LET THE PEOPLE SPEAK: Telcos want to know how GST will be applied to prepaid reloads.

Telecommunications companies will be conducting a survey on whether customers prefer to pay GST on top of the reload value or have it deducted from the reload amount.

For example, a RM10.00 reload could be RM10.60 (RM10 reload plus 6% GST added) or just RM10.00 (RM9.43 reload plus 6% GST added).

Yesterday, the Communications and Multimedia Consumer Forum of Malaysia  (CFM), which was tasked to protect consumer rights, said in a statement that it understands the burden that GST places on consumers and came up with a transitional measure.

It said telcos will be giving their prepaid customers free calls and SMSes for the next three months to lessen the pinch of GST.

For instance, customers will get five minutes of voice calls and five SMSes for every top up of RM10 and 10 minutes of voice call and 10 SMSes for every top up of RM20.

However, customers will have to top up more than RM5 to enjoy the extra calls and SMSes.   CFM was established in 2001 by the Malaysian Communications and Multimedia Commission (MCMC).

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Across the site