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PM wants Telcos to absorb 6% Prepaid Service Tax

The Prime Minister of Malaysia, Datuk Seri Najib Razak has called on the mobile operators to re-think their move to pass down the 6% service tax to prepaid customers in the country.

He added the move was not approved by the Finance Ministry as the decision to impose taxes was taken by the telcos themselves.

“The reaction and feedback from the public is that the move by telcos… is unpopular and difficult to accept.”

“So I hope that the telcos will review this move as we are trying to reduce the burden on the people who have to bear the rising cost of goods,” he said.

Datuk Seri Najib Razak is also the Finance Minister of Malaysia.

From Sept 15 onwards, prepaid users and those purchasing starter kits would need to pay an extra 6% as the Telcos agreed they would no longer absorb the service tax, which was introduced in 1998. A customer who purchases a RM10 prepaid reload will need to pay RM10.60, with the 60 sen being the service tax.

The Telcos which will start imposing the 6% service tax are- Celcom, Maxis, DiGi, Tune Talk, XOX, Salamfone, Merchantrade & IMEtel.

[Source1]– TheStar

[Source2]– The Malaysian Insider

 

About Kugan

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