Tuesday, May 30, 2023

Prepaid Reloads will be priced higher with GST, comes with free voice & SMS for the 1st 3-months

As 1st reported on the MalaysianWireless Facebook, prepaid reloads from the Telcos including Maxis, Celcom Axiata, DiGi, U Mobile, Tune Talk and the others will be priced higher with the 6% Goods and Services Tax (GST).


Yesterday, the Malaysian Government have said that the prepaid reload pricing will not be increased as GST will replace the previous 6% sales and services tax (SST).

MalaysianWireless earlier said that a RM10.60 prepaid reload will be priced at RM10.60. It will come with RM10 airtime plus 5min voice call (within network) and 5 SMS (within network). This has been confirmed. The free voice minute and SMS will only be available in the first 3-months.

A full list of the denomination and its free voice and SMS has been requested and will be updated as soon as it becomes available.

Full Media statement from the Communications and Multimedia Consumer Forum of Malaysia (CFM) below.

Clarification On 6% GST For Prepaid Top Ups

A meeting was held between the Telco industry and the Customs Department today to clarify on GST implementation for prepaid services. During the meeting, the following was agreed:

  • Reload for prepaid is subjected to GST upon activation.
  • The value of the prepaid reload is identical to pre-GST, the only difference is that GST is added to the reload amount.
  • The industry is in compliance with the GST Act 2014,  and therefore has added GST to the current value of reload (so for example, RM10 prepaid reload value will now cost RM10.60), which is agreeable to Customs since the underlying value of the reload is unchanged.
  • The industry agrees with Customs that many customers feel the burden of GST for some items, including prepaid.  Therefore, as a transitional measure, the industry will give to all customers who reload RM5 and above a value which is higher than the GST addition, in forms of free minutes and SMS.  For example, customers will get 5 voice minutes and 5 SMS for every top up of RM10. While for reloads of RM20, the customer will receive 10 voice minutes and 10 SMS. This will apply for three months, starting tomorrow, 3 April 2015.
  • The Customs and the industry will continue to work together on the implementation of GST.

Mobile communications services (excluding International Roaming) is a standard rated item under the GST Act 2014, and since mobile communications services are neither GST exempt nor zero rated items, the industry is required by law to charge 6% GST. International Roaming charges are zero rated.

The GST paid by customers will be collected by telcos and remitted to Customs, in accordance with the GST Law and guidelines for all goods and services consumed.

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

Related Articles


Stay Connected with Us


Hosted at AIMS Data Centre


Latest Articles