Action against telcos charging SST on prepaid cards — Gobind

KUALA LUMPUR: Strict action will be taken against any telecommunications companies who are still reluctant to exempt the Sales and Service Tax (SST) for the sale of prepaid cards which is accorded to Malaysians only.

Communications and Multimedia Minister Gobind Singh Deo emphasised that action would be taken through the Communications and Multimedia Commission as the directive had been implemented with immediate effect previously.

“I understand the coordination of the financial system of the telecommunications companies take 10 to 14 days. It takes time to realign their computer system.

“But after this clear directive, there is no SST for Malaysians buying prepaid cards,” he told a press conference after the Malaysia Rice Bowl Startup Awards ceremony on Friday.

Gobind Singh pointed out that there was a mechanism in place to determine whether individuals purchasing the prepaid cards were Malaysians or not.

He added that complaints could be filed with the ministry if SST was charged on any user who purchased the prepaid card.

The implementation of the SST which took effect on Sept 1 saw some consumers expressing dissatisfaction when the final value of the prepaid card they had purchased had a certain amount deducted for SST.

On Sept 5, the Finance Ministry instructed telecommunications companies to stop charging SST on prepaid cards purchased by Malaysians.