Implementation of GST inclusive prepaid reload cards delayed

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The Customs Department has postponed its directive to telecommunication companies to revert to the original prices of prepaid reload cards, without the Goods and Services Tax (GST) included, which was to take effect from today (May 1).

Its director-general Datuk Seri Khazali Ahmad said this was being done following the Malaysian Communications and Multimedia Commission (MCMC) announcing that the telcos would not be able to reconfigure their systems to exclude the GST by today.

“As such the Customs director-general directive dated April 28 to telcos to revert to the original prices of prepaid reload cards without the GST, is postponed,” he said in a statement here yesterday.

At a press conference yesterday, Khazali had announced that from May 1, prepaid reload cards must be sold at pre-GST prices, for example a reload card with RM10 value must be sold at RM10 and not with the six per cent GST imposed, whereby its cost becomes RM10.60.

This was because tax at the same rate had already been included at the RM10 price, he said.

MCMC Datuk Seri Dr Halim Shafie also in statement a few days ago had said the prices (of prepaid reload cards) could not be changed by May 1 because of the reconfiguration issues.

Source: BERNAMA