Shabery: It's RM10 for RM10 worth of phone credit

Prepaid mobile reloads will cost RM10 for RM10 worth of phone credit, said Datuk Seri Ahmad Shabery Cheek .

The Communications and Multimedia Minister said the 6% Goods and Service Tax (GST) will be usage-based and only be imposed when the call is made.

"GST imposed on prepaid reloads will now be usage-based. The Government is of the view that it prudent not to collect the tax before the service is used," Ahmad Shabery said Wednesday.

"To balance the effects of GST implementation, the Government has told telecommunication providers (telcos) to reduce their service tariffs. At the same time, they have been asked to provide affordable packages for groups like students.

"The Government wants telcos to implement and follow this mechanism within six months time," said Ahmad Shabery in a press conference at his Ministry's office in Putrajaya.

He also said that the Government would ensure that the implementation of GST would not harm the rakyat.

On May 1, Prime Minister Datuk Seri Najib Tun Razak directed Ahmad Shabery to take settle issues surrounding GST for mobile prepaid reloads.

The confusion arose when Customs Department director-general Datuk Seri Khazali Ahmad announced that telcos had been directed to revert to pre-GST rates, which were at the time "tax-inclusive".

A few hours later, the Malaysian Communications and Multimedia Commission's (MCMC) responded that it was "near impossible" to make the change immediately due to "systems reconfiguration issues".