Beginning 1st January 2016, all prepaid reloads in Malaysia will be sold without the extra 6% charge. This is in line with the directive to exempt prepaid reloads from GST. It doesn’t mean that prepaid is free from GST, as it will be charged upon usage, instead of being paid upfront.
Fortunately, the government will be offering GST rebates as announced during Budget 2016. To address concerns, MCMC has published the full details ahead of its implementation on new year’s day
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As 2015 comes to an end, Malaysian prepaid users will experience a change come 1st January 2016. Effective next year, all prepaid reloads will no longer include the 6% GST, so a RM10 top up will be sold at RM10. Should you hold out on your new reloads until the new year?
As the transition is taking place with new reload cards entering the shelves, a couple of telcos are dishing out special offers that will give you more than your money’s worth. Read on to find out what offers are available.
Malaysian prepaid players we’re given a 1st November deadline to revise its top up/reload pricing to its pre-GST days. At the moment, a RM10 top up would cost RM10.60 while a RM50 top up costs RM53, inclusive of 6% GST.
The Ministry of Finance (MoF) has been slaving away tinkering and adjusting the scale of the annual Budget announcement. Being hard hit by drops in oil trade prices due to an excess of supply and micromanaging the qualms of 1MDB, our Prime Minister Datuk Seri Najib Tun Razak has a lot on his hands – if that wasn’t clear enough. But will the ICT market win or lose when Budget 2016 is read?
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Malaysians purchased 4.8 million smartphones and 0.9 million tablets during the first half of 2015. Numbers which rose by 42% and 15%, in the two aforementioned categories, compared to the same half of 2014. Predominately, sales were geared towards makers from China and Taiwan for smartphones and the tablet space still leans towards global vendors.
When GST came into effect on 1st April, Malaysian consumers were up in arms over the extra 6% charge on prepaid reloads. There was mass confusion as Deputy Finance Minister Ahmad Maslan retorted that there shouldn’t be any price increase. The fact is prepaid services should have been taxed with service charge which the telcos have been absorbing all these while. There’s no running away from GST as even postpaid users have always been paying the extra 6% tax on their monthly bills.
After taking charge of the prepaid reload issue, Communications and Multimedia Minister, Datuk Seri Ahmad Shabery Cheek has finally announced a solution which would hopefully put the matter to rest.
The implementation of GST in Malaysia has caused a stir for prepaid users as there was confusion on the extra 6% tax on top ups/reloads. To make things clear, 6% GST will be applied to all telco services whether it is postpaid or prepaid with the exception of international roaming charges. So if you’re buying a RM10 top up, you have to pay RM10.60 and a RM50 top up would cost you RM53. There’s no running away from it at the moment.
As consumers were caught unaware of the new charges, things got more confusing when Deputy Finance Minister Datuk Haji Ahmad Maslan declared that there shouldn’t be any price increase of prepaid reloads. You can probably imagine the chaos at phone shops and convenience stores nationwide. Even some shops were reported to stop selling prepaid reloads as they had gotten fed up with justifying the added charges.
With the dreaded GST landing today, lots of items will have the additional Goods and Service Tax applied on them, and the same goes for your postpaid and data subscriptions. As we already know the 6% GST will also be applied to mobile devices like tablets, smartphones, certain apps as well as other telecommunication products and services.
But what people don’t know is that mobile communications services have already had a 6% service tax on postpaid services to begin with of which will be replaced by the 6% GST. How much of a change this will incur is still up to debate but it shouldn’t change too much for the postpaid, broadband and data users.
The price of prepaid services and corresponding airtime for SIM Packs, Starter Packs and Reload Coupons will be maintained but as part of GST accordance telcos are required to charge 6% GST on top of these prices but all international roaming charges are not subject to GST as they are classified as a zero-rated supply.
Now the iPhone 6 is priced from RM2,702 for 16GB, which is RM303 more since its launch in Malaysia last last year. Meanwhile the phablet sized iPhone 6 Plus now costs more than RM3,000 at RM3,126. This is an increase of RM377. The same 6% increase also applies on their iPads in Malaysia but it isn’t so much as it left unchanged during the price revision that happened a few weeks ago.
You can view the full list of the latest Post-GST iPhone and iPad pricing after the break.
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You would need to pay more for smart Phones and various electronics when GST takes effect this April 1st. Now OPPO is doing something different by offering to pay for your GST.
We are pretty sure OPPO would need to pay 6% tax and they will be absorbing it into their selling price to mitigate any price increase towards its customers. So that means there’s no change of price on their smart phones starting next week. Also this could be potential RM125 savings on 6% GST if you’re planning to get the OPPO N3 that costs RM2,098 outright.