6% service tax on prepaid reloads and starter packs starting Sept 15

As reported before on Malaysian Wireless, the mobile operators(Maxis, Celcom, DiGi, Tune Talk..etc) will start implementing the 6% service tax on prepaid reload/top ups starting 15 September 2011. The new move also applies on purchase of new prepaid starter packs as well.

The telcos said the service tax is a consumption tax and chargeable to the customer, as provided for in the service tax laws. A customer who purchases a RM10 prepaid reload will need to pay RM10.60, with the 60 sen being the service tax.

The Service Tax Act 1975 requires telecommunication companies to levy service tax at the prevailing rate on telecommunication services, including mobile prepaid services. This is similar to the service tax levied on food and beverage purchases from restaurants and hotels.

Official statement from the mobile operators to follow.

[Update1]- 8 telcos that will start charging the 6% prepaid tax, they are- Celcom, Maxis, DiGi, Tune Talk, XOX, Salamfone, Merchantrade & IMEtel.

About Kugan

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

Check Also


Free 1GB Internet during Lockdown, Telcos Invest up to RM1 Billion

Customers of Celcom, Maxis, Digi and U Mobile will enjoy 1GB of free Internet daily starting today until 14 April 2020. RM1 Billion investment during MCO.


COVID-19 : The Internet is Under Pressure with Over a Billion People Under Lockdown

Social distancing and with more people working from home to avoid the coronavirus (COVID-19), will the Internet break? The short answer is probably not.


Stay at Home: U Mobile gives Double Hotspot Quota for Free

Stay at Home: U Mobile is doubling hotspot data quota for selected prepaid and postpaid customers, for free starting today.