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(source from @mykpdnkk Twitter)
KUALA LUMPUR – To meet the requirement by the Government on the implementation of the Goods and Services Tax (GST), goods and services consumed in the telecommunications sector will be subjected to GST effective 1 April 2015. GST implementation is part of the government’s tax reform programme to enhance the capability, effectiveness and transparency of the country’s tax administration and management. GST will replace both the current Sales Tax and Service Tax respectively on 1 April 2015.
Mobile communications services is a standard rated item under the Goods and Services Tax (GST Act) 2014, and since mobile communications services are neither GST exempt nor zero rated items, the industry is required to charge 6% GST charges.
Effective today, the 6% Service Tax on postpaid services will be replaced by the 6% GST.
For prepaid services, the prices and corresponding airtime for SIM Packs, Starter Packs and Reload Coupons are maintained. However, as per the GST Act 2014, telcos are required to charge 6% GST on top of these prices. The 6% GST is collected on behalf of the Government in accordance with the GST
Law and guidelines for all goods and services consumed.
The Government has, classified international roaming services provided by all Malaysian telecommunication companies as zero-rated supply. As such, all international roaming services will not be subjected to GST.
The 6% GST will also be applied on mobile devices such as tablets and smartphones, certain contents, applications, and other telecommunications products and services.
As a supply and demand forum promoting a self-regulating industry, the Communications and Multimedia Consumer Forum of Malaysia (CFM) is confident that all players in the communications and multimedia sector will ensure the smooth and efficient implementation of GST on their goods and services. On their part and through the General Consumer Code of Practice for the Communications & Multimedia Industry (“GCC”), CFM will continue to ensure that the interests and rights of the consumers in the telecommunications and multimedia sector are being looked after.
In view of the mandatory GST implementation, CFM has made a set of Frequently Asked Questions (FAQ) available to customers. Customer may find it at www.cfm.my and Facebook address consumer.forum.malaysia. Consumers are advised to contact their respective service providers for specific enquiries on the implementation of GST.
Through CFM’s ongoing activities such as its nationwide Knowledge Sharing Sessions, it expects consumers to increase their knowledge and understanding of their rights and responsibilities in relation to the purchase and use of goods and services from the communications and multimedia industry in general.
(as cited in The Communications and Multimedia Consumer Forum of Malaysia, 1st April 2015).
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