Cancellation of Prepaid Top Up and SIM Starter Pack 6% Service Tax

After Malaysia’s Prime Minister urged telcos company to “consider” the decision of 6% Service Tax to be bear by prepaid customer.  Finally,  after re-considered among these Malaysia telcos companies,  they agreed to cancel the 6% Service Tax that will be bear by prepaid customers which announced few days ago(8th September 2011).  In other words, Malaysia’s Telco companies will absorb the 6% Service Tax by them self for the time being.

This is a good news, but not at all.  Mobile prepaid customers may NOT get any special call rates and SMS rates in future due to the 6% Service Tax absorb by the company.  In other words, prepaid customer will have to pay expensive call rates and SMS rates.  The 6% Service Tax issue will be “review” again at suitable time in future.