After debunking a false release that GST will be abolised, the Ministry of Finance of Malaysia has declared that the goods and services tax (GST) will be zero-rated from 1 June.
UPDATE: Ministry of Finance announced that GST will be zero-rated effective 1 June 2018.
Today, a purported press release declaring GST will be abolished by 1 June 2018 has been circulating online. It claims to be from the Ministry of Finance and it also mentions that GST collected from 9 May 2018 will be refunded back as compensation. The purported release also mentions that no new tax will be introduced throughout the first two years of Pakatan Harapan’s administration.
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.
The Goods and Service Tax (GST) is just around the corner as the month of March draws to a close, and it’s a given that a lot of the electronics we know and love are going to get a price hike come April 1st.
So far, there haven’t been any corporations that have confirmed anything about the price hike and most are keeping mum about the specifics involving the 6% GST tax, especially since the tax will be included in production costs as well.
Hit the break for a list of items taxable.