KUALA LUMPUR: The Government and International Telecommunication Union (ITU) are carrying out a study to determine if cellular telecommunication service is a utility or otherwise.
Deputy Information Communication and Culture Minister Datuk Joseph Salang said the 6% service tax would not be imposed if the service was deemed a utility.
“To date, the matter is not finalised,” he said when winding up debate on the Supply Bill 2012 at the ministry’s committee stage in Parliament here Tuesday.
Some MPs had complained that imposing a 6% tax would burden consumers while the service received was not as great as claimed.
In the meantime, Salang clarified that the service tax had been imposed on the telecommunication service since 1998.
Categories: Malaysia