Nitty-gritty details of GST rebate on prepaid top-ups should be ironed out - FOMCA

Although there have yet to be any complaints pertaining to the rebate of the Goods and Services Tax (GST) for prepaid top-up cards, several related issues need to be ironed out by the telecommunication service providers and the Malaysian Communications and Multimedia Commission (MCMC).

Federation of the Malaysian Consumers Associations (FOMCA) chief executive officer Mohd Yusof Abdul Rahman said among the issues that could arise in the future were the enforcement and updating of the ownership of the prepaid numbers, as an effort to prevent foreign workers from taking advantage of the

rebate.

"For example, there are agents of foreign workers who buy the prepaid numbers for them in bulk. The registration of the numbers may be done using the information of the agent, who is a Malaysian.

"So, definitely the numbers would be entitled to the six per cent rebate, although it is being used by foreign workers. Maybe the telecommunications companies and MCMC should discuss on how to address this issue," he told Bernama on Monday.

The implementation of the GST rebate on prepaid top-up cards which was announced by Prime Minister Datuk Seri Najib Razak when tabling the 2016 Budget last year, began on Jan 1.

READ: Customers to fully understand GST rebate method on prepaid top-ups within three weeks - Jailani

Mohd Yusof said apart from that, although no formal complaints had been lodged, he had heard of grouses by certain parties, especially students, who were not so happy with the rebates being given within a 24-hour period.

He said there were cases where the buyer had purchased a RM10 reload, but because of the RM0.57 GST charge, the balance of RM9.43 was not sufficient to enable the internet data quota required, and the buyer had to wait until the amount was credited back.

"These are the things that the authorities need to see, because even if it seems trivial, for some it may be indispensable," he said.

With the number of prepaid users expected to exceed 20 million in the country, he added there would definitely be issues that would arise, although the implementation of the rebate seemed to be running smoothly so far.

According to the guidelines issued, RM0.57 would be deducted from a RM10 top up, RM1.70 (from RM30) and RM2.83 (from RM50), and the amount would then be credited back to the user's account within 24 hours.