KUALA LUMPUR: The reintroduction of sales and service tax (SST) will create uncertainties in the telecommunications sector’s prepaid segment based on past precedent. Affin Hwang said while the details on SST are still vague, it could negatively affect the revenue or profits for the telcos’ prepaid business, should the government decide not to provide any tax rebates. The research house said prior to April 2015, both postpaid and prepaid sales were subjected to a six per cent service tax. The telcos passed on the SST to their postpaid customers but absorbed the SST for prepaid users. Upon the introduction of goods and services tax (GST), the telcos decided to pass on both.

Source: New Strait Times May 21, 2018 07:52 UTC