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Wednesday, May 13, 2015

ORE CONFUSION: Now, no GST on prepaid reloads but tax on usage - Ahmad Shabery

MORE CONFUSION: Now, no GST on prepaid reloads but tax on usage - Ahmad Shabery
PUTRAJAYA -  Putrajaya announced today that mobile prepaid users will not be charged the Goods and Services Tax (GST) when purchasing reloads but will have to pay the 6 per cent consumption tax upon using the service.
Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek explained that users who purchase an RM10 mobile prepaid reload will receive an RM10 credit upon activation but will subsequently be taxed on their usage of each call and text message.
"Today the Cabinet decided to agree with the ministry's suggestion so that prepaid mobile reloads sold at RM10 will receive RM10 upon activation,
"The GST tax for the prepaid value will be charged on the usage or usage-based,
"The government views this as a fair way as the government does not collect taxes before the service is used," Ahmad Shabery told a press conference today. - Malay Mail

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