KUALA LUMPUR: All telecommunication companies have agreed to suspend plans to impose the 6% service tax on prepaid lines pending discussion with the Malaysian Communications and Multimedia Commission.
Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim, who had already made it clear his ministry did not support the tax, told a press conference in Angkasapuri on Monday that the telcos must hold off implementing the tax on Thursday as planned.
He also said that the matter would be discussed in the Cabinet meeting on Wednesday.
The move by the telcos is deeply unpopular with users.
Dr Rais had earlier advised the telcos to think about their subscribers, saying that some of the firms had been reaping profits of between RM800mil and RM1.2bil annually.
They have been earning attractive profits, notwithstanding paying the levy on behalf of subscribers since 1998, he had said.
Prime Minister Datuk Seri Najib Tun Razak had on Friday said the plan to impose the service tax from Thursday was not approved by the Finance Ministry, adding that the people were already being burdened by the rising cost of living.
Source: Star online