Tuesday 20 March 2012

No approval for 6% service tax for prepaid phone users

KUALA LUMPUR (March 20): The proposed six per cent tax on prepaid phone subscribers has yet to be decided, the Dewan Rakyat was told on Tuesday.

Deputy Information, Communications and Culture Minister Datuk Joseph Salang said the ministry had never ordered the Malaysian Communications and Multimedia Commission (MCMC) to issue a memo to cellular phone service suppliers to implement the tax.

"The decision was to postpone the service tax charge, as announced last year. The ministry does not know why the report mentioned as such.

"The truth is there was no directive or decision," he said when answering a supplementary question from Datuk Saifuddin Nasution Ismail (PKR-Machang) in Parliament here.

Saifuddin in his question sought confirmation from the ministry about media reports that said the MCMC had issued a memo to all telecommunication companies to be technically prepared for the implementation of the service tax.

MCMC chairman Datuk Mohamed Sharil Tarmizi had also issued a statement on Monday, clarifying no directive had been issued on the issue.

To a supplementary question from Fong Po Kuan (DAP-Batu Gajah) if Telekom Malaysia was planning to review the monthly rental of fixed line telephones, Salang said the company took into account several factors to decide the rate.

"Among others, the cost of domestic and international networks, the speed and amount of data subscribed to (about internet). The domestic costs is related to the central costs provided, costs of cable and exchange equipment.

"The ministry is always monitoring service charges by service providers, including Telekom, so as not to be excessive," he said.

Earlier, when answering the original question from Mohd Nizar Zakaria (BN-Parit) whether internet service charges would be reviewed, Salang said: "The government does not supervise the rates of mobile and broadband services." - Bernama



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