KUALA LUMPUR – A meeting was held between the telco industry and the Customs Department today to clarify on GST implementation for prepaid services. During the meeting, the following was agreed:
- Reload for prepaid is subjected to GST upon activation.
- The value of the reload is identical to pre-GST, the only difference is that GST is added to the reload amount.
- The industry is in compliance with the GST Act 2014, and therefore has added GST to the current value of reload (so for example, RM10 reload value will now cost RM10.60), which is agreeable to Customs since the underlying value of the reload is unchanged.
- The industry agrees with Customs that many customers feel the burden of GST for some items, including prepaid. Therefore, as a transitional measure, the industry will give to all customers who reload RM5 and above a value which is higher than the GST addition, in forms of free minutes and SMS. For example, customers will get 5 voice minutes and 5 SMS for every top up of RM10. While for reloads of RM20, the customer will receive 10 voice minutes and 10 SMS. This will apply for three months, starting tomorrow, 3 April 2015.
- The Customs and the industry will continue to work together on the implementation of GST.
Mobile communications services (excluding International Roaming) is a standard rated item under the GST Act 2014, and since mobile communications services are neither GST exempt nor zero rated items, the industry is required by law to charge 6% GST. International Roaming charges are zero rated.
The GST paid by customers will be collected by telcos and remitted to Customs, in accordance with the GST Law and guidelines for all goods and services consumed.
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About CFM
The Communications and Multimedia Consumer Forum of Malaysia (CFM) was established and designated by the Malaysian Communications and Multimedia Commission (MCMC) in 2001. It is a platform for the industry and the consumers/public to make coherent and constructive contributions to service improvements and policy development.
CFM is tasked with, amongst others, to promote growth of Malaysia’s communications and multimedia industry and the protection of consumer interests by fostering the highest standards of business ethics and behavior through industry self-governance. CFM is also a channel for complaints redress on Communication and Multimedia services.
If you have unresolved complaints about your Communication and Multimedia services, please lodge your complaint by calling CFM’s toll free number 1-800-18-2222 or visit CFM’s website at www.cfm.org.my or write in to enquiries@cfm.org.my.
Media Contacts:
Noor Shahdiella Abd Manan shahdiella@cfm.my 019-3246036
Roharrashidah Abdul Halil roharrashidah@cfm.my 016-9642972
Razaleigh Zain razaleigh@cfm.my 019-4170766
