Government told to keep its promise on no GST on prepaid reloads - Gerakan Youth

Gerakan Youth today urged the Royal Malaysian Customs to uphold the Government’s pledge that the six per cent Goods and Services Tax (GST) will not be imposed on prepaid reload cards.

Its chief, Tan Keng Liang said the Customs department should not compromise and backtrack on the decision made by the Government on Thursday.

"With all due respect to the Customs department, the directives by the Government whereby GST should not be imposed on prepaid reload cards must be adhered by the telcos," he said in a statement on Friday.

Tan also said that the Customs department should enforce the directives and take action against the telcos under the GST Act 2014.

Yesterday, Bernama reported that telecommunication companies (telcos) will continue to impose the 6 per cent GST on prepaid reload cards effective immediately.

However, users will be offered additional air time credit and short-messaging service (SMS) valued at over RM1 or more than the 6 per cent rate.

Customs Department GST Division director, Datuk T. Subromaniam said the decision was made through discussions between the chief executives of telcos, the Customs Department and the Domestic Trade, Cooperatives and Consumerism Ministry.