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Telcos, Gvt, Still In Talks About GST On Top-Up Cards

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KUALA LUMPUR: Telecommunication companies are still discussing with the Government on the implementation of the 6% Goods and Services Tax (GST) on prepaid reload cards.

“The telcos need time to get adjusted to the system and we are confident that there will be an amicable solution,” Deputy Finance Minister Datuk Chua Tee Yong said Monday during question time at the Dewan Negara.

Chua said the companies were given one month to study the necessary measures to be taken and whether they would offer more air time or maintain the price of top up cards.

Confusion arose over the GST charged on mobile phone prepaid cards when some telcos increased the prices of the cards by 6% while the Government had said the prices would remain.

After a meeting between government officials and telcos, it was decided that the companies would be allowed to temporarily impose the GST on top of the prices – with additional talk time for customers – until a new solution was found.


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