Home / Industry / MCMC/SKMM / [Insider] Prepaid Customers to pay 3-4% Airtime Tax starting 2012?

[Insider] Prepaid Customers to pay 3-4% Airtime Tax starting 2012?

Mobile operators in this country pays hundred of millions in service tax according to Dato’ Joseph Salang Gandum, Deputy Minister of Communications Malaysia.

Yesterday the mobile operators met with SKMM to discuss about the prepaid service tax in Malaysia as the operators have been absorbing the cost all these while. In response to that, the Deputy Minister told Malaysian Wireless that the prepaid tax has got nothing to do with SKMM and the mobile operators should refer this matter to the Ministry of Finance.

He also said that the prepaid users in this country should not be burdened with extra chargers. “Of course we want the industry to absorb the cost(prepaid service tax), consumers shouldn’t be burdened with all these,” he told Malaysian Wireless.

[Insider]- A friendly source close to Malaysian Wireless said that some 4-5% service tax will be pass down to prepaid users in Malaysia. But the method of passing down the cost to the consumers is still being decided. He added that the mobile industry is still discussing this matter.

Tune Talk planned to pass down the 6% service charge to all its prepaid customers starting 1st July 2011, however it is believed that the MVNO might delay this until the other mobile operators such as Celcom makes the 1st move.

A new date is being planned for the prepaid service tax implementation. The prepaid service tax is rumoured to be effective on 1st January 2012.

Stay tuned to Malaysian Wireless for the update!

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy