PM: Prepaid tax not gov't decision, wants review

Prime Minister Najib Abdul Razak today said that the government has nothing to do with the telecommunication companies' decision to pass the burden of the six percent service tax on mobile phone prepaid reloads to the customer.

He said the move was decided entirely by the telecommunication companies, and should be reviewed so as to not burden the rakyat.

"The Finance Ministry did not approve it. It was done by the telecommunication companies themselves," he said when met after launching the new Maybank corporate logo today in Kuala Lumpur.

The premier added that he has received much feedback on the matter and feels that a review of the decision is needed especially as the rakyat is now facing increasingly lean times.

“I have received information and feedback from the people at large and find that the decision is unpopular.

“So I hope it can be reviewed to reduce the burden of the rakyat who are now facing hikes in food prices,” he said.

Yesterday, telecommunications companies announced that it will now charge consumers the six percent tax it had previously been footing.

The decision caused widespread unhappiness, with politicians from both sides raising concern of its effect, particularly on middle and low income families.

The opposition has also hit out at the Najib administration, saying that it is proof of its uncaring stance.