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Saturday, May 9, 2015

GST on prepaid cards hurting rakyat badly

malaysia-telcoOn May 8, 2015 this writer visited a long-time friend who owns a small mobile phone shop. This is a type of small shop which only takes up about 30% of the space in a big shop and is very popular in KL.
This writer noted that many people who came to buy top-up coupons were angry with the 6% Goods & Services Tax (GST) levied on the coupons because they thought that the GST had been abolished for prepaid cards.

It is more than a week since the mobile phone reloads fiasco started on April 28, 2015 (when the announcement was made that prepaid users need not pay GST on the reloads) and yet no news is forthcoming regarding the status of the top-up coupons till to-date.
As it stands now, consumers are fuming over having to pay the 6% GST when purchasing the reloads.
Prime Minister Datuk Seri Najib Abdul Razak has assigned the Minister for Communication and Multimedia, Ahmad Shabery Cheek to take charge of the matter and yet we are still waiting for developments.
"Why has the minister gone quiet? What is happening? Is this matter going to be swept under the carpet while we consumers continue to pay GST?" questioned an elderly retiree who bought a RM10 reload for RM10.60.
An hour and a half of sitting at the shop enabled this writer to observe that more than 30 prepaid consumers were angry with the flip-flop concerning this issue.
"At first one Customs man said no need to pay, then the Multimedia people said must pay, what sort of nonsense is this?" asked another retiree.
All those who bought reloads said that they have to adhere to a budget with many of them saying that they cannot afford postpaid. They also added that GST is really burdensome.
"I cannot afford to pay GST. My savings are dwindling and my children have got families to take care of so I don't want to burden them but the government is burdening me," said another retiree who also bought a RM10.60 reload coupon.
The prepaid users expect the GST to be abolished from these reload coupons.
"We don't want to hear any excuses from the government or the big telcos," they added.
- rakyattimes

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