Telco formula affirmations like 'buy RM10, RM10 can'

The telecommunications industry supports the government's decision to impose GST reload card.

KUALA LUMPUR: The telecommunications industry supports the government's decision to impose a Goods and Services Tax (GST) for prepaid reloads through a formula 'Buy RM10, RM10 Can' which is based on the use of airtime.

In a joint statement by the Communications and Multimedia Consumer Forum of Malaysia (CFM), the telecommunications company had expressed that they understood the call for the implementation of a more future-oriented.

In this regard, they welcomed the direction of the Minister of Communication and Multimedia, Datuk Seri Ahmad Shabery Cheek on the implementation of GST and prepaid based on the principle of using the service.

"It means GST will be applied to each individual transaction when they use the airtime," the statement said.

Referring to the new methodology, the telecommunications company will form the basis for describing the implementation of the GST on all electronic payments 'e-wallet' and 'mobile wallet' is increasingly popular in the pace of the digital economy.

The telecommunications company also expressed a commitment to provide more affordable and value-added packages to various walks of life.

"The industry will continue to invest to upgrade its network in the country and is committed to providing quality services to customers," the statement said.

In addition, to elaborate, the telecommunications company said the implementation of the new changes involving GST is a massive effort that lasted more than half a year to complete.

"The decision to change the basic GST implementation of activation is not so easy to use. It involves complex configuration for systems of telecommunication companies and more than 30,000 third-party retailers, resellers and agents such as financial institutions, electronic payment providers, supermarkets, petrol stations and sales agents other. "

However, in line with the new direction was announced yesterday, the telecommunications company committed to trying their best to implement it within six months.

As announced Shabery, charge GST to six per cent of the total added value will remain and reload RM10 still priced at RM10.60.

CFM is an independent organization and a platform for the industry as well as consumers express their views and contribute constructively to the improvement and development of related policies.