Many are feeling anxious with the Goods and Services Tax (GST) coming into effect this coming 1st April.

Telco users, especially those on prepaid lines are equally anxious because there has been some individuals spreading news via social media about the hike of prepaid reloads, in which one would need to pay an extra of 6% for every reload value purchase.  This means, shall you buy RM10 worth of reload, you will need to pay RM10.60 inclusive of the 6% GST tax.

Well, did some digging (intensive to say the least), and we have come to a conclusion that you should not be charged extra for the prepaid reload purchase you are making.

We are saying this based on the fact that at this current moment, most of us are buying our prepaid reloads (be it RM10. RM50, or RM100) at the same amount and get the same worth of reload.

How is this possible? Well, according to what we learned, every prepaid reload you have purchased before the implementation of GST has already included a 6% service tax which was implemented in 2011.  A press release by Maxis dated 8 Sept 2011 as seen  below is proof to that.
Nonetheless, prepaid reload prices has not increased since then, with the prices remaining similar until now, believed to be due to customer pressure whom had complained about the service tax charges then. Telco’s have since absorbed the tax.

Of course with the implementation of GST, telcos do have the option to re-include the 6% tax to the top-up value, hence making you pay more for every reload.  Nonetheless, we feel this is unlikely to happen as competition among telcos in Malaysia is stiff, not mentioning the decision would not be favoured by consumers.

The 6% current service tax charged by telcos

That said, the newly imposed 6% GST should be a direct replacement over the old 6% service tax as the government does not allow any other taxes to be charged aside from the GST which will be implemented beyond 1st April.

It is also widely expected that such move would also be done on postpaid customers of telcos whom have been paying for the extra 6% service tax for quite some time.