1. What is GST?
GST stands for Goods and Services Tax, and it is an indirect, broad-based consumption tax. It is charged on all taxable goods and services that are supplied in Malaysia except those specifically exempted.
2. Is it a new tax to the consumer?
GST is a new tax that is introduced to replace the current sales tax and service tax.
3. Why do the Telcos implement GST on their products and services now?
The introduction of GST is part of the Government’s tax reform programme to enhance the efficiency and effectiveness of the existing taxation system. As telecommunication services are treated as supply of services, GST shall be imposed on the provision of such prepaid services.
4. What are the telecommunication products and services that will be charged with GST?
With the exception of international roaming and other zero rated services under GST, other telecommunication services are standard rated services and are subject to GST at 6%. These services include voice, SMS, data, IDD calls, starter packs, prepaid top-up tickets, Value Added service, Air Cash service, and mobile content.