Govt yet to decide on 6% service tax for pre-paid phones

KUALA LUMPUR (Nov 22): The government has yet to decide whether or not to cancel the six per cent service tax on prepaid telephone users as has
been announced by telecommunication companies (telco), the Dewan Rakyat was told on Tuesday.

Deputy Information Communication and Culture Minister Datuk Joseph Salang said the tax was one of the major revenue earners for the country.
"The decision to be made may also depend on the telco," he said in response to a supplementary question from Saifuddin Nasution Ismail (PKR-Machang) on the matter.

Responding to a question from Amran Ab. Ghani (PKR-Tanah Merah), Salang said 1,692 locations had been identified for the implementation of the ministry's Wireless Village project.

The project, being carried out in stages, was scheduled for completion end of next year, he added.

“A total of 1,408 villages nationwide have been equipped with the wifi service as of last Sept 23, but the figures do not include wireless access centres in Penang and Miri, Sarawak," he added.

He said the project had been developed in selected areas during by-elections, like Kerdau, Pahang: Merlimau, Melaka; Tenang, Johor; Gua Musang,
Kelantan and Sibu, Sarawak.

To a supplementary question from Amran on the selection of the villages for the wifi project, Salang said it was based on three main criteria, which
included population.

"The other two criteria are its location, whether the village is near to an area which already has access to 3G, etc, and whether the village already has
wire service, like fixed telephone line," he added. - Bernama