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Pre-paid reloads to get GST rebate - In-Tune Business Outsourcing Services

Pre-paid reloads to get GST rebate

PETALING JAYA: Starting 1 Jan 2016, Malaysians will get a rebate on the Goods and Services Tax (GST) charged on their mobile phone prepaid airtime reloads.

A prepaid user who tops up RM10 from Jan 1 will initially get an airtime of RM9.43 as the 6% GST will be deducted from the top-up, said the Communications and Multimedia Consumer Forum of Malaysia (CFM).

A rebate of 57 sen, which is equivalent to the GST amount, will then be credited by the respective telco directly into the user’s prepaid account within 24 hours, said CFM.

 The CFM, a platform for the country’s telcos and consumers, said all mobile prepaid reloads will be sold at the original price from Jan 1.

This means that a RM10 reload will be priced at RM10 instead of the present price RM10.60 which is inclusive of GST.

The statement said that after Jan 1, old prepaid reload stocks must be sold at the original price and that service providers are given 15 days to ensure that all their dealers and agents comply with the direction.

Only Malaysian nationals registered on a prepaid telephone service using their MyKad, military or police identity card, will be eligible for the GST rebate.

The rebate will be given for a one-year period starting Jan 1 to Dec 31 2016.

“Any decision to extend the GST rebate will be made known from time to time,” the CFM said in its statement.

Prime Minister Datuk Seri Najib Tun Razak, when tabling Budget 2016 in October, had announced the rebate, saying the Government realised that many mobile phone users, especially youths, depended on prepaid services.

Only prepaid users will be eligible for the rebate as the Government wants to help those in the bottom 40% segment of society (B40), many of whom use prepaid mobile services, the CFM said.

Consumers do not need re-register with their telcos to get the rebates.

It will be automatically credited into the prepaid accounts of the entitled consumers, based on the registration data that they provided when they bought their package.

However, the statement said 6% GST would be included in the price of new prepaid SIM packs.

Prices for new prepaid SIM packs varies among operators.

“Telcos have worked hard to ensure that there will be a smooth transition so that customers will have a seamless experience when topping up,” the CFM said.

A FAQ on the GST rebate is available at http://cfm.org.my

Source from THE STAR ONLINE, Tuesday, 29 December 2015.

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