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Thursday, April 30, 2015

Prepaid phone cards revert to pre-GST prices, effective 30 April

PUTRAJAYA - Prepaid phone card users will pay the pre-Goods and Services Tax (GST) price when they purchase reload cards today.

Customs director-general Datuk Seri Khazali Ahmad said the GST implementation on prepaid reload cards has to be done through "tax inclusive" which refers to the service tax imposed before pre-GST.

"The businesses can only impose telecommunications service tax after the customers activate the reload cards.

"That is the point where GST should be imposed...This means a RM10 top-up would cost RM10 instead of GST-inclusive RM10.60," Khazali told reporters in a press conference here today.

He said a directive to this effect was sent to all telco companies on April 28 and will come into effect tomorrow.

Last month, the Customs Department had said that telcos had agreed to provide additional air time of more than RM1 for passing on GST of 6% to consumers.

It was agreed that the measure would be a three-month interim decision before a permanent solution is agreed on by both parties.

Meanwhile, Khazali also pointed out that two GST-related cases will be facing court decision today at the Shah Alam magistrate's court.

"For the two cases, investigations have come to an end and they will know their fate tomorrow and I would like to take this opportunity to advise errant businesses not to take advantage of this situation," he added.

The Customs Department will also recruit "mystery shoppers" among its officials to monitor errant businesses and companies which have not registered for GST.

However, Khazali declined to name the number of "mystery shoppers" to be deployed so as not to jeopardise their operations.

Khazali also pointed out that the department also released guidelines concerning businesses' invoice where all ready-made invoices printed before April 1 can be used until end of September.

He said his department would commence receiving GST statements on May 1, either on a monthly or quarterly basis.

The statements can be processed through the online GST portal or manually through post through the Kelana Jaya Customs office.

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