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Prepaid rates back to pre-GST from May 1

PUTRAJAYA: All telecommunication companies will have to retain the old pricing for their prepaid cards based on the tax inclusive concept effective May 1, Customs department director-general Datuk Seri Khazali Ahmad said.

Khazali said that he had issued a letter on April 28 to all the telcos on the tax inclusive issue.

"The Goods and Services Tax (GST) on telephone prepaid cards is similar to the tax imposed under the Service Tax Act.

"We informed them earlier to impose the same method for the GST system on April 16 but the telcos were charging 'exclusive tax'.

"So now if prepaid cards are RM 5 or RM 10, they should be maintained without any additional charges," he said at the department headquarters, here today.

Khazali added that the department will take action against those who do not follow the directive.

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