KUALA LUMPUR: Celcom Axiata Bhd has provided tax rebates to Malaysian customers who have purchased prepaid plans from September 1-5.
The rebates were in the form of on-net call freebies as stated on its website, Celcom said in a statement today.
The move in line with the government’s decision to exempt the Sales and Service Tax (SST) on mobile prepaid services.
The company, however, said the six per cent SST still applied for non-Malaysians and other Celcom services.
Celcom chief executive officer Mohamad Idham Nawawi said it welcomed the government’s decision.
“Mobile communications has become an integral part of daily life. As such, this decision will make a positive impact on many Malaysian prepaid mobile users.
“Celcom is committed to providing customers with affordable packages, upholding the government’s aspirations and initiatives in further developing the welfare of Malaysians through our nationwide network,” Idham said in a statement.
Earlier today, Finance Minister Lim Guan Eng said Malaysians would not have to pay SST for mobile prepaid services provided by telecommunication companies (telcos).
The ministry said all prepaid services provided to Malaysians by telco companies must be exempted from SST, and urged the telcos to promptly act and comply with the exemption
The exemption, which falls under Section 34(3)(a) of the Service Tax Act 2018, will be enforced beginning tomorrow (September 6).
"The exemption is necessary to overcome problems from these companies, which are facing difficulties to change their systems immediately.
"Other methods will be announced later for these telco companies so that the government will not lose out in efforts to ensure customers receive full value for the money they pay," it added.
Through the exemption, prepaid customers would receive the maximum credit value when they top up as they would no longer be charged SST, the ministry said.