DO NOT BURDEN THE CONSUMER – REVERT TO TAX INCLUSIVE CONCEPT – IF NOT IT WILL BE DAYLIGHT ROBBERY

CUSTOMS DEPARMENT  - GST DIRECTIVE    MCMC GST

I am really dumbfounded with the statement made by Malaysian Communications and Multimedia Commission (MCMC) Chairman, Datuk Sri Dr Halim Shafie that “It will be impossible to bring down prices of prepaid reloads to pre-GST (Goods and Service Tax) levels immediately, due to the huge logistics involved in implementing the change”

This statement was made in response to directive issued by Royal Malaysian Customs Department Director General, Dato’ Sri Khazali to the telecommunication companies to revert to the original rates before the implementation of the GST effective 1st May, 2015.

This problem should not been a problem in the first place if the telecommunication companies understood the implementation of GST in the first place. The consumer already been paying 6% Sales and Services Tax (SST) earlier and it was replaced with GST.

What is so difficult to revert to face value of the prepaid coupon if prior to GST implementation, the telecommunication was already practising the 6% taxation collection and paying the government accordingly?

MCMC Chairman, said “consumers will have to pay RM10.60 for RM10 worth of mobile credit. The extra 60 sen is for GST. Alternatively, he said, consumers can pay RM10, but enjoy only RM9.40 in mobile credit after GST is deducted”.

Why MCMC is supporting the telecommunication company in this issue when it is directly impacting the consumer? Why do we need to have a survey which clearly does not benefits the consumer?

Technically, if it is implemented based on MCMC survey approach, it will be a daylight robbery of 6% by the telecommunication company since they have already included the 6% SST in their prepaid coupon pricing all this while.

Manivanan Rethinam Pengerusi, Majlis Gagasan Malaysia Penyelaras Bersama, We Are Malaysians

Manivanan Rethinam
Pengerusi, Majlis Gagasan Malaysia

Furthermore the Royal Malaysian Customs Department has already given one month grace period for the telecommunication companies to revert to the old pricing for their prepaid cards based on the tax inclusive concept..

Why is it impossible or complicated? How difficult will it be to revert to the old system and basically rename SST to GST by the telecommunication companies? If the system is really an issue than revert to manual till it is updated.

If MCMC or telecommunication companies and their agents need a consultant, I will be happy to assist because you don’t have to be a rocket scientist to solve this.

Lets not delay it any further and revert to tax inclusive concept by 1st May,2015 for the benefit of all Malaysians

Quote by Grover Cleveland “A government for the people must depend for its success on the intelligence, the morality, the justice, and the interest of the people themselves”.

Manivannan Rethinam​, A.M.P.
Chairman
Majlis Gagasan Malaysia

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