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Cabinet committee to discuss 6% prepaid service tax issue

The Cabinet Committee on supply and food prices will discuss the 6% service tax for prepaid users when it meets in a few days.

“We do not want to burden the people,” said Deputy Prime Minister Tan Sri Muhyiddin Yassin when asked what signal the Government was giving by intervening in the issue involving the 6% service tax for prepaid users.

Muhyiddin, who chairs the committee, said it would be meeting soon to discuss ways to manage the cost of living.

Deputy Finance Minister Datuk Donald Lim Siang Chai says he will not agree to providing incentives to telecommunication companies (telcos) for deferring their plan to impose a six per cent service tax on prepaid users.

Commenting on the suggestion by Information Communications and Culture Minister Datuk Seri Dr Rais Yatim yesterday, Lim said such a move was unnecessary at the moment as all telcos in the country were doing well.

“Unless they are not making money, only then we have to think of otherwise,” said Lim.

On September 8, eight mobile operators(Celcom, Maxis, DiGi, Tune Talk, XOX, Salamfone, Merchantrade & IMEtel) announced that they will pass down the 6% prepaid tax to consumers starting September 15, 2011. However, the date has been postponed till further notice after a discussion between the Telcos and Datuk Seri Dr Rais Yatim early this week.

 

[Source1]– The Star

[Source2]– Business Times

About Kugan

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