PUTRAJAYA will enforce a requirement that telecommunication companies must not deduct 6% SST from mobile prepaid cards, said Finance Minister Lim Guan Eng.

The sales and service tax is not to be passed on to customers who are entitled to the full value of their top-ups. 

“These telco companies, they are making trouble. I don’t understand why under the previous government, they’re able to ensure the full value.

“And then under the SST, they tell customers they will deduct the amount and then refund it. Why do it this way? It troubles everyone. You are troubling yourself,” he said on RTM’s Selamat Pagi Malaysia. 

“I don’t know whether the telcos have a BN (Barisan Nasional) brain or whether it’s a systems issue. I have told them to correct it. If they don’t correct it, the government will intervene to correct it. I guarantee this to the consumers.”

Lim said over the weekend that he would be meeting with telco representatives soon. He also said any statement by telcos that prepaid cards are subjected to SST is wrong.

Telcos have been offering users free talk time and data in lieu of the SST, which they are charging customers. 

“We are taking a soft and considerate approach in the implementing the policies. We hope they take heed. If not the government will intervene,” Lim said today.

The government hopes to collect RM21 billion by year-end, compared with RM44 billion last year from the abolished goods and services tax. 

“The goal is to collect the revenues with as little grief to taxpayers as possible.” – September 4, 2018.