Saturday, September 10, 2011

Put phone tax on hold, telcos told

STAR, 11 September 2011

PUTRAJAYA: The Information, Communications and Culture Ministry has “blocked” plans by the telcos to impose a 6% service tax on prepaid mobile phone services.

“I have intimated to the telcos to stop the implementation of the service charge at this untimely hour,” said minister Datuk Seri Dr Rais Yatim.

“I will raise the issue with the Cabinet on Wednesday,” he said yesterday.

“My ministry does not support the move.”

Dr Rais said the Malaysian Communications and Multimedia Commission (MCMC) has also been directed to study the mobile operators' licensing regulations on service tax.

“We will see what the regulations state,” he added.

Dr Rais advised the telcos to think about their subscribers, saying that some of the firms had been reaping profits of between RM800mil and RM1.2bil annually.

“They have been earning attractive profits, notwithstanding paying the levy on behalf of subscribers since 1998,” he said.

Meanwhile, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob also planned to bring the issue up at the Cabinet meeting.

He said there had been numerous calls for the telcos to upgrade their services “which had not been taken seriously”.

“Yet, they now want to impose service tax on customers,” he said.

Prime Minister Datuk Seri Najib Tun Razak had on Friday said the plan to impose the service tax from Thursday was not approved by the Finance Ministry, adding that the people were already being burdened by the rising cost of living

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