Review service tax on Celcom and Digi.

From Celcom FAQ :

1. What is service tax?

Service tax is a consumption tax and chargeable to the customer, as provided for in the service tax laws. The service tax laws require the telecommunication companies to levy service tax at the prevailing rate on telecommunication services, including prepaid reload and starter packs. However, the telcos have been absorbing the service tax since the introduction of the prepaid services in 1998. Effective 15 September 2011, the telcos will be charging customers service tax for purchases of prepaid reloads and starter packs. With effect from 1January 2011, service tax rate is 6%. Prior to 1 January 2011, service tax rate was 5%.

2. Why are you charging this tax now after absorbing it all these years?

In accordance to the service tax laws, prepaid reloads and starter packs will be charged with applicable service tax. This is similar to the service tax levied on food and beverage purchases from restaurants and hotels, for example. Prepaid service is the only service whereby the service tax has been absorbed by the telcos, not by the customer. Prepaid call and SMS charges were more expensive then and have progressively dropped over the years. For example, customers used to pay RM0.60 per minute when the service was first introduced but today it is as low as RM0.12 per minute. As for SMS, it has dropped from RM0.20 to as low as RM0.01 and MMS was previously RM0.50 and now it is as low as RM0.10. In addition, customers now enjoy various promotions such as free airtime and bonus credits amongst others as part of the benefit of being a prepaid customer.

3. How much will I pay now with the service tax?
The 6% service tax will be charged on top of the prepaid reload and starter pack at point of sale for every purchase. For example, when you purchase RM10 prepaid reload, you need to pay RM10.60 and will get prepaid credit of RM10. The 60sen is the service tax. The service tax will be remitted to the Government.

4. Will service tax be charged on starter packs and every mobile prepaid reload channels; i.e. epay, etc?
Yes, starter packs and reloads will be charged the 6% service tax effective 15 September 2011 regardless of channels.

5. Will service tax be charged on starter packs and every mobile prepaid reload channels; i.e online, epay, etc?
Yes, exept for any reloads via:

    ATMs
    Online/Internet banking
    Cash deposit machines
    Electronic payment kiosks

until further notice.

6.Does this charge apply to prepaid broadband?
Current service tax laws require telcos to levy service tax on prepaid upon sale. As actual utilization of reload cannot be ascertained at the point of sale, total reload / starter pack price will be subject to service tax. Nevertheless, customers now enjoy various promotions such as free airtime and bonus credits amongst others as part of the benefit for being a prepaid customer.

Sumber : http://www.celcom.com.my

From Digi FAQ :

1.What is this service tax about?
  The 6% service tax is a consumption tax chargeable to the customer, as stated in Government service tax laws. Service tax laws require telecommunication companies such as DiGi to impose a service tax onto customers for the telecommunication services provided; including the sale of Prepaid SIM packs and reloads. The service tax prior to January 2011 was 5%, and DiGi has been absorbing this since 1998. However, we will be charging customers for the service tax effective 15 September 2011.

2.Why is DiGi charging the service tax now, after absorbing it for all these years?
 In accordance to service tax laws, customers who purchase Prepaid SIM packs and/or reloads are subjected to service tax. This is similar to the service tax levied on food and beverages purchased at restaurants and hotels.

It is also important to note that the Prepaid service has been the only service whereby the tax is absorbed by telecommunication companies. This was feasible as Prepaid calls & SMS charges used to be expensive, but these prices have progressively dropped over the years.

For example, customers used to pay RM0.60 per minute for calls when Prepaid mobile services were first introduced, but today it is as low as RM0.12 per minute. As for SMS, it has dropped from RM0.20 per message to as low as RM0.01. Sending an MMS costs only RM0.10 today although it previously cost RM0.50. As such, it is no longer cost-effective for us to absorb the 6% service tax.

Furthermore, customers now enjoy various promotions such as free airtime, bonus credits, etc. as part of the benefits of being a Prepaid customer.

3.How much will I have to pay, now that service tax is imposed?
 The 6% service tax will be charged on top of the price of your Prepaid SIM pack and/or reload at the point of sale.

For example, when you purchase the RM10 Prepaid reload, you will have to pay RM10.60 even though you will still be getting only RM10 of credit. The RM0.60 is the service tax, which will be remitted to the Government.

4.Will I be taxed on all DiGi Prepaid SIM packs and/or reloads?
 Yes, all purchases of DiGi Prepaid SIM packs and/or reloads will incur a 6% service tax effective 15 September 2011. For example, the DiGi® Best Prepaid SIM pack, previously RM8.50, will now cost RM9 whereas the DiGi® Easy Prepaid SIM pack, previously RM16.80, will now cost RM17.80. The only exception to this is the DiGi® Prepaid Internet SIM pack, which will remain tax-free.

5.Can I still reload at all the DiGi Prepaid reload channels?
 Yes, except for reloads via:

    Automatic Teller Machines (ATM)
    Cash Deposit Machines
    Internet Banking
    Electronic Payment Kiosks

6.If I am staying in a tax free area, will I still be taxed?
 No. The purchase of DiGi Prepaid SIM packs and/or reloads in tax-free areas such as Labuan, Langkawi and Tioman will be exempted from the 6% service tax.

Sumber : http://www.digi.com.my

P/s : Lepas ni nak beli topup dah nak kena bawak duit lebih la nampaknye. Sebelum ni topup RM 10 dapat RM10. Lepas 15/9, nak topup RM10 nak kena bayar RM10.60. ataupun bayar juga RM10 tapi bila check baki RM 9.40. Bengkok la kalau lama2 macam ni. Nak reload Digi semata-mata nak online... Hurm... Nak kena cari hotspot IIUM wifi balik lah nampaknya (opsssss... Study la wey).