Wednesday, September 14, 2011

Telcos agree to defer six pct service tax

"The meeting with the managements of Celcom, Maxis, Digi & U Mobile was
held in a cordial atmosphere ...they responded positively to the ministry's

KUALA LUMPUR: Telecommunications companies (telcos) have agreed to defer the six per-cent service tax for pre-paid users which was to come in to effect on Thursday. Knowledge, Communications & Culture Minister Datuk Seri Dr Rais Yatim said the agreement was reached at a gathering between the major telcos in the country & the ministry at Angkasapuri here today.


Celcom was represented by its chief executive officer (CEO) Datuk Shazalli Ramly, Digi Group by CEO Henrik Clausen, Maxis Group by CEO Sandip Das & U Mobile by CEO Dr Kaizad Heerjee.
advice, the government's views & sentiments expressed by Prime Minister Datuk Seri Najib Tun Razak on the matter," they told reporters after the meeting whichlasted about an hour. They said that the Cabinet would be updated on today's meeting at its next
sitting & hoped the issue would no longer be raised as the telcos concerned
had agreed to defer the tax.

Rais said the postponement would enable the Malaysian Communications &
Multimedia Commission to review the matter to choose when would be the best
time to implement the tax & the rate.

The telcos had been absorbing the six per-cent service tax that was to be
charged from pre-paid users but collectively decided recently to pass it to
customers from Thursday (Sept 15). 

They added that to appreciate the positive response from the telcos, which had
paid the government RM6 billion from service tax since 1998 besides playing a
major role in providing telco servics to  26 million Malaysians, they would
recommend to the government to provide them some incentives.- Bernama

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