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6% Prepaid Service Tax Implementation Deferred

The 6% Prepaid Service Tax that was supposed to be implemented starting September 15 has been postponed to a later date.

In a meeting with the mobile operators this morning, the Minister of Communications Datuk Seri Rais Yatim has asked the four mobile operators to postpone the 6% prepaid service tax on top ups and starter packs to a later date.

Eight mobile service providers announced last Thursday that they will pass down the 6% prepaid service tax to consumers.The eight operators are Celcom, Maxis, DiGi, Tune Talk, XOX, Salamfone, Merchantrade & IMEtel.

The move has since received negative response from the public and the Government.

Last week, the Prime Minister asked the operators to review the move as it will burden the consumers while the Assistant Minister of Communications Datuk Lee Kim Shin said the majority of the users had disagreed with the decision.

A survey by newspaper Malay Mail revealed that the public is unhappy with the move- Read “Consumerists want telcos to absorb service charge”.

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About Kugan

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