Customs Dept makes another U-Turn and postpone directive to stop charging GST on pre-paid cards

PUTRAJAYA – The Customs Department has decided to make a U-turn and decided to postpone its May 1 directive for telecommunications companies to cease charging customers the additional six percent Goods and Services Tax (GST) on pre-paid cards until further notice.

This was in line with the Malaysian Communications and Multimedia Commission’s (MCMC) announcement yesterday that a survey was being conducted by the companies, said Customs Director-General Datuk Khazali Ahmad.

He explained that the companies were currently assessing whether customers preferred lower values on which GST would be charged.

“Therefore the directive from the Customs Director-General on the servicing of GST on pre-paid cards, that was made effective on May 1, will be postponed,” he said in a brief statement to the media this afternoon.

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