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Saturday, September 10, 2011

Telcos urged to reconsider service tax charge

Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob has urged telecommunication companies (telcos) to reconsider their decision to charge prepaid customers a six percent service tax for reloads and SIM starter packs.

"I hope they will reconsider before I bring it up at the cabinet meeting as I promised," he told reporters at the Bank Rakyat Aidilfitri Open House today.

Information, Communications and Culture Minister Dr Rais Yatim said yesterday the matter would be raised at the cabinet meeting next week.

Ismail Sabri noted that there had been numerous calls to the telcos to upgrade their services, which had not been taken seriously, yet they now wanted to impose a service tax on customers.

"I have received feedback through my Facebook (account) objecting to the charge," he said.

End to 20 price-controlled items

He said the telcos need to be with the government to reduce the rising living costs of the people.

"The government has introduced various measures in this regard, among them the Kedai 1Malaysia. But suddenly, the telcos want to increase the people's burden. This shouldn't be," he stressed.

On the increase in the price of standard chicken to more than RM8 a kg from RM7.20, he said the 20 price-controlled items for the Aidilfitri season were in force for only a week prior to and after the festive period.

"After Sept 6, the prices are determined by market forces," he explained.

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