Prepaid reload prices to stay the same

PETALING JAYA: The four big telecommunications (telcos) operators, namely Maxis Bhd, Celcom Axiata, DiGi.com Bhd and U Mobile Sdn Bhd have agreed to retain the old price of prepaid reload cards, which is expected to take effect within a month.
''For example, the RM10 prepaid top up will be maintained, where the prepaid user will pay RM9.43 for the prepaid and 57 sen of Goods and Services Tax (GST),'' Deputy Finance Minister Datuk Ahmad Maslan told the media after visiting Proton Centre of Excellence last Friday.
''However, the Telcos have agreed to give 'air-time' bonus, which the user will still get the full 'air-time' credit, depending on the prepaid value that they had paid, in this case, RM10 'talk-time' credit and short-messaging service (SMS),'' he added.
Ahmad Maslan said the decision was arrived following discussions with the CEOs of the major telcos, in which they had requested for a month of preparation to change to the new pricing system.
On Thursday, the Customs department had said that the 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 one before a permanent solution is agreed on by both parties.
''This decision has been argued by consumers. So therefore, through discussion with the telcos this morning, they have agreed to maintain the old rate of prepaid pricing,''Ahmad Maslan said, noting that the prepaid reload price is the main issue raised by consumers on the first and second day of GST implementation.
Meanwhile, prepaid mobile users, especially those who are eligible to claim input tax credit (ITC), can obtain tax invoices for their top-ups via the online customer service (OCS) of their respective communications service providers, SunBiz was informed.
In accordance with GST Act 2014, all purchases that are GST taxable must come with tax invoices or receipts that state the price of the item as well as the GST amount.
A check with three telcos namely Celcom, Digi and Maxis revealed that the tax invoices are available on the OCS of all three telcos. The OCS tracks the mobile activities, calls, SMSes as well as top-up history of all users who sign up for the service.
Celcom's prepaid arm, Xpax, has published a set of frequently asked questions (FAQs) on GST on its website.
According to the website, existing customers can retrieve their prepaid tax invoices via the OCS by enrolling for a prepaid tax invoice while new customers can opt for the prepaid tax invoices during the registration process.
"Once customer has completed request, prepaid tax invoices are available for download up to a maximum of six months. You may also walk in to our Celcom Blue Cube to request for a hardcopy of your prepaid tax invoice (if you have opt-in to receive prepaid tax invoice) for a fee of RM2," it said.
Users who are GST registered individuals/companies will be able to use the prepaid tax invoice to claim ITC from the Royal Malaysian Customs Department (RMCD).
Checks with Digi and Hotlink, Maxis' prepaid arm, revealed a similar process, whereby all tax invoices are available on the OCS.
It is also understood that Digi issues receipts for all transactions between Digi and its customers, including those at the Digi stores and ATMs while online transactions are can be tracked on the OCS. Digi users can also call customer service to check on their tax invoices if the user does not have access to Internet.
Meanwhile, a Hotlink customer care personnel said all retailers who sell prepaid top-ups will issue receipts with GST reflected on it.
According to a list of FAQs on GST published on Hotlink's website, all prepaid top-ups are sold inclusive of GST and GST is charged upon activation of each top-up. No further GST is applied on prepaid calls, SMS and internet.
"GST is charged upon top-up instead of usage to ensure you do not 'overpay' the GST due to rounding. For example, SMS for Friends & Family currently costs RM0.01. If GST is applied upon usage due to rounding, each SMS will become RM0.02. Therefore, to lighten the burden on customers, we will charge GST upon top-up," it said.
It added that the price of prepaid top-ups was never inclusive of the 6% SST previously. Prior to April 1, users who purchased RM10 top-up received RM10 airtime, as the 6% SST was previously absorbed by all telcos.