Talks between Customs and telcos reach a stalemate

Customs Department is committed all the same to getting telcos to absorb the 6 per cent GST for top-ups.

KUALA LUMPUR: Talks between the Customs Department and telecommunication companies (telcos) on the latter absorbing the 6 per cent goods and services tax (GST) for top-ups continue despite there being no progress so far. Alternatively, the original plan where telcos give consumers more airtime may have to be adopted.

Customs Department’s GST director Subromaniam Tholasy, while conceding that the ongoing talks have hit a few snags, pledged that he would continue to engage with the telcos until a solution could be found. “The telcos are already giving consumers extra air time.”

He was commenting on public complaints that telcos had hiked up their prices for phone top-ups.

“I can say that is what we want,” said Subromaniam when asked whether the telcos would return to the normal rate. “I can’t say whether we will get what we want.”

“What is certain is that we want to ensure that customers don’t lose (out).”

On a brighter note, he said that the number of consumer complaints regarding the new top-up rates had gone down considerably compared with the first few days after April 1 when the GST came into effect. “It was the 6 per cent GST that prompted the telcos to increase their prices for top-ups.”

“That’s why they are charging a minimum RM10.60 for top-ups although they have been given a month to adjust.”

“We don’t expect them to adjust immediately.”

Meanwhile the Communications and Multimedia Consumer Forum of Malaysia (CFM), a regulating body, said that telcos were legally obliged to charge the 6 per cent tax on top of coupon prices.

Reports have surfaced of dealers who have refused to sell top-ups after consumers accused them of cheating by charging the 6 per cent GST.