Time needed to sort out GST on prepaid top-ups,
say telcos
KUALA LUMPUR: Telecommunication companies (telcos) are
in support of Communications and Multimedia Minister
Datuk Seri Ahmad Shabery Cheek's efforts in determining
the best solution to the issue of the Goods and Services
Tax (GST) on prepaid mobile services.
However,
they opined that implementation of any solution would
take time, as it involves numerous parties along the
prepaid ecosystem such as updating back-end processes,
training the front liners as well as preparing
communication materials for consumers.
"The
prepaid market is a complex ecosystem. Hence, it will be
a challenge for any mobile service provider to implement
the required changes at short notice," U Mobile's Chief
Executive Officer (CEO), Wong Heang Tuck said.
The value-chain is further complicated with various
top-up options for the consumers like physical card,
virtual reload, Internet and mobile banking as well as
ATM machines, he told Bernama. |
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Ninety per cent of U Mobile subscribers are prepaid
users and 10 per cent, post-paid.
U Mobile currently has more than 11,000 traditional
dealers and 31,000 alternate distribution channels
nationwide comprising convenience stores, electrical
chain stores, hypermarkets and supermarkets.
"Despite the challenges, U Mobile is fully committed to
supporting the minister and will focus on getting the
distribution and back-end ready to serve our customers,"
Wong said.
Maxis Bhd echoed U-Mobile's concern,
saying the firm needs enough time to reconfigure its
system and work with third party retailers, resellers
and sales agents.
"Implementing any new changes to the application of the
GST on prepaid top-ups will involve similar complexities
in reconfiguring the system and other activities.
"It also includes the massive effort of exchanging
top-up tickets from all the physical touch points, which
has to be done manually, dealer by dealer," its CEO,
Morten Lundal said.
As of March 31, Maxis had 8.992 million prepaid
customers, while the post-paid segment comprised 2.823
million.
According to Lundal, Maxis is willing to work with the
authorities, including the Malaysian Communications and
Multimedia Commission (MCMC), to ensure smooth
implementation and treatment of the GST on prepaid
top-ups.
"We will continue to extend our fullest support to the
Minister, as part of the efforts to ensure an amicable
solution is reached for the benefit of customers and the
industry," it added.
Digi Telecommunications Sdn Bhd explained further that
the difficulty also involved ensuring a seamless
experience for customers and business continuity across
15,000 of Digi's touch points.
"With the majority of 45 million mobile consumers in
Malaysia using prepaid to-date and inclusive those with
multiple sim cards, we owe it to them to have a swift
and definitive decision for peace of mind," CEO, Albern
Murty said.
Digi spent more than eight months making adjustments for
full compliance to the implementation of GST on April 1.
Another telco, Celcom Axiata Bhd, which has close to
10.2 million or 78 per cent in prepaid customers, said
in comments, it was slightly premature for the company
to estimate the time needed to change the system as it
is a process under review.
As of December 2014, Celcom subscribers stood at 13
million with about 16,000 traditional distribution
channels and 17,000 non-traditional.
At present, a reload top-up of RM10 has a GST value of
60 sen. Until all these changes are made, users will
continue to pay GST above the reload value.-Bernama
Source:
The Star Online
, dated
11/05/2015 |