Gobind: Telcos which charge SST on prepaid cards to face strict action

Communications and Multimedia Minister Gobind Singh Deo. (Bernama pic)

KUALA LUMPUR: Communications and Multimedia Minister Gobind Singh Deo yesterday warned of strict action against any telecommunications company which charges Malaysians the sales and services tax (SST) for prepaid cards.

He said action would be taken through the Communications and Multimedia Commission as the directive had been implemented with immediate effect.

“I understand that coordination of the financial system of telecommunication companies takes 10 to 14 days. It takes time for them to realign their computer systems.

“But after this clear directive, there is no SST for Malaysians buying prepaid cards,” he told a press conference here.

He said there was a mechanism in place to determine whether individuals buying prepaid cards were Malaysians or not.

He added that complaints could be filed with the ministry if the SST was charged to any user who bought the cards.

The implementation of the SST, which took effect on Sept 1, saw some consumers expressing dissatisfaction as the final value of the prepaid card they purchased had a certain amount deducted for the tax.

On Sept 5, the finance ministry instructed telecommunications companies to stop charging SST on prepaid cards purchased by Malaysians.