Consumers to pay GST for prepaid phone cards but get extra airtime

Prepaid phone card users have to pay the 6% GST, but will be compensated with extra airtime. – April 2, 2015. tax (GST),Prepaid phone card users will now have to pay an extra 6% as goods and services tax (GST), but will get to enjoy the same value for calls and text messages as a temporary solution to consumer complaints and implementation problems with the new tax.

The Customs Department said telcos had agreed to top up the extra value as a interim solution for the next three months until a final decision is made, the department's GST director Datuk T. Subromaniam said today.

He told reporters at a press conference that a RM10 prepaid card would now cost 60 sen more for the GST, but that telcos had agreed to add more than 6% to the stored value in prepaid cards for the benefit of consumers.

As an example, he said a RM10 prepaid card would have an added value of RM1.

"The value added on to top-ups will be more than 6%.

"We have discussed with all the telcos and they agreed to this temporary solution," he said.

- TMI