The Malaysian government has decided that prepaid reload customers can get a Government Service Tax (GST) rebate over their prepaid reloads next year.
The move was announced by Prime Minister Najib Razak at the tabling of the budget last Friday in which he said that Malaysian prepaid users will be entitled for a rebate on GST effective 1st January until 31st December 2016. With this new development, all reloads will still be sold with the extra 6% until 31st of December. The new directive of charging GST upon usage, instead of reloads will only take effect starting 1st January 2016.
This basically means that consumers of prepaid reloads will still need to pay the extra 6% GST when they purchase their reload coupons until 31st December this year. After that, the 6% GST will be charge upon usage which means your every call/sms or data use will be charged at an additional 6% GST as the diagram below shows.
The good news however is that prepaid users can claim a rebate over the GST but the mechanism on how this rebate would be claimed remains unclear for now.
It is however my guess that the government would require some sort of proof that prepaid reload used to make the claim.
The maximum amount of the rebate also remains uncertain as for now, with those not paying income tax likely to be somewhat not affected by this move as they are likely to be charge GST for each use, but will not be bothered to claim the rebate at all.