Malaysian telcos agree to delay introduction of 6% pre-paid tax for consumers

Malaysia’s telcos have reportedly agreed to suspend plans that would have seen them impose a 6% tax on pre-paid line on customers from 15 September 2011, the Star Online reports. It is understood that all operators have agreed to hold off on implementing the new charges until after a discussion with the Malaysian Communications and Multimedia Commission (MCMC). The move comes after widespread criticism of the proposals by both consumers and political figures alike; Prime Minister Datuk Seri Najib Tun Razak said last week that the proposals had not been approved by the Finance Ministry. The PM pointed to the fact that operators had been generating profits of between MYR800 million and MYR1.2 billion (USD265 million and USD399 million), despite having absorbed the pre-paid tax since its introduction in 1998, calling on telcos to consider their subscribers.