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Telcos agree to add 6pc air-time on prepaid top-ups

PUTRAJAYA: Telecommunication service providers have agreed to give the minimum of six percent added air time on prepaid top-up cards for a period of three months, said Customs Department Goods and Services Tax (GST) Director Datuk Subromaniam Tholasy.

He said the companies have agreed to do so while both the department and the industry stakeholders can come up with a permanent solution.

“This is a grace period of three months before we can sort out the teething problems related to the implementation of GST on the service,”

“After the period, we will see whether it is possible to reduce the price of air time, or whether they would remain at the same rate before GST (came into effect,”

Subromaiam said this during a press conference on the tax at the Finance Ministry building, here, this evening.

The GST imposed on the pre-paid reload cards have raised the ire of a large number of users, many of whom took to social media to air their grouses.

Also present was Domestic Trade Cooperatives, and Consumerism Ministry Secretary-General Datuk Seri Alias Ahmad.

Alias said over 44 percent of complaints lodged with the ministry were related to the top-up cards.

However, Alias said the ministry recorded a 34 percent decline in complaints to its centre with only 1,829 calls received as at 1pm today.

He said at least 26,817 smartphone users have downloaded the ministry's MyKira Application since yesterday.

The ministry, he said, has issued 60 notices to errant traders who needed to come up with show-cause letters in three days to explain offences related to GST.

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