Monday, February 6, 2023

Statement from Celcom regarding Prepaid Tax Implementation

Celcom Axiata has issued a statement a couple minutes ago regarding the prepaid tax implementation in Malaysia.

In September 2011, the implementation of prepaid tax was deferred to a later date as the mobile operators(Celcom, Maxis, DiGi & U Mobile) continues to discuss the matter with the Government.

Yesterday Bernama reported that the prepaid tax will be implemented starting from July 1 this year. The news report quoted Hong Leong Investment Bank (HLIB) research as the source. The story can be found here(link).

However the Malaysian Communications and Multimedia Commission (MCMC) denied the report today. In response to that, Celcom issued the official statement below:

Celcom Axiata Berhad, the country’s first and foremost mobile telecommunications provider confirms that we have not received any memo or letter to impose the 6% service tax for prepaid services on 1 July 2012 by the Malaysian Communications and Multimedia Commission (MCMC).

However, discussions are actively being carried out with MCMC to find an amicable resolution with relief to all parties and supports MCMC’s commitment to ensure consumers will continue to enjoy affordable telecommunication services.

On 12 September 2011, the industry announced the deferment of the implementation of service tax imposed on the purchases of prepaid reloads, starter and sim packs in response to the advice of the Prime Minister Dato’ Seri Najib Tun Razak, and a subsequent request made by the Minister of Information, Communications and Culture Dato’ Seri Utama Dr Rais Yatim. The telecommunications companies have historically absorbed the levy on behalf of the customers and it is the only service where tax is subsidised by the companies, and not paid by the customers.

A copy of the official statement from SKMM can be found here(link).

MalaysianWireless will continue to monitor the progress of the prepaid service tax implementation and will update more on this topic.

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

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