Telecommunications companies have until Oct 31 to revert to the pre-Goods and Services Tax (GST) rates for their prepaid reloads

Govt warns telcos: Change prepaid reloads to pre-ST rates or else..New Straits Times

KUALA LUMPUR: Telecommunications firms (telcos) have until Oct 31 to revert to the pre-Goods and Services Tax (GST) rates for their prepaid reloads, said Deputy Finance Minister Datuk Johari Abdul Ghani.

He said the government will not compromise with telcos that fail to do so and is prepared to act against them.

"The telcos need to adjust their own system, if they want to impose the GST, they should find an appropriate method, the charge should be based on usage and not during the sale of the reloads as this is not convenient for the consumer.

"I expect them to fulfil this promise as we have given them plenty of time. If they give the excuse of being not ready, by Oct 31 they still need to heed the directive on retaining the original rates," he told reporters at the Parliament lobby here today.

The government will not entertain telcos' excuse that their computer system is not ready, as they have been given a long time since the GST implementation on April 1 to get ready, he said.

Yesterday, Johari said at a press conference that the Royal Malaysian Customs Department will announce the reversion to the pre-GST rates on Nov 1, and that the department had discussed the matter with the Malaysian Communications and Multimedia Commission (MCMC). -- Bernama