Resign over GST fiasco for prepaid reloads, PKR tells Ahmad Maslan

Deputy Finance Minister Datuk Ahmad Maslan should resign over the fiasco involving mobile prepaid reload charges and the goods and service tax (GST), PKR said.

PKR strategy director Sim Tze Tzin said Ahmad should resign for failing to resolve problems as promised within a month, as to whether the retail value of prepaid reloads should include GST or if the consumption tax should be charged on top of the value of the reload cards.

"Of mobile phone users, 60% are prepaid subscribers. Since the GST was implemented, 44% complaints filed were over the prepaid cards.

"He has to rectify the situation, assume responsibility and resign now," Sim said at a press conference at PKR's media centre at Yayasan Aman today.

Sim said "too much was at stake", as telcos would rake in profits of RM80 to RM120 million from the GST. On April 3, Ahmad said prepaid telco cards and reloads would revert to pre-GST prices, following a cabinet decision that the tax would not be imposed.

He also said earlier this week that telcos had been told to revert back to the old prices, as the 6% GST merely replaced the sales and services tax (SST), which was also imposed on prepaid reload cards.

Ahmad had said if the telcos were willing to give free talk time to consumers pending a solution to the issue, the companies could afford not to increase their prices, adding that telcos that failed to comply with the directive to revert to the old prices could face legal action.

However, yesterday it was reported that the prepaid reloads, which would continue to be sold with GST added on top of reload amount, could not be reverted back to the pre-GST price.

Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek said in a Bernama report yesterday the process to revert back to the old prices could not be done by today because more time was needed to reconfigure the systems for service providers and third agent part agents like banks, electronic payment providers, supermarkets and others.

Pakatan Rakyat is campaigning in the Permatang Pauh by-election by attacking the Barisan Nasional federal administration, using the GST as its main weapon.

The opposition pact had been driving its campaign on how the GST is affecting ordinary Malaysians struggling to cope with increased living costs. – May 1, 2015.