MALAYSIA'S BUDGET 2011: SALES TAX EXEMPTION FOR MOBILE PHONES

KUALA LUMPUR, Oct 15 (Bernama) -- The Malaysian Government has proposed
sales tax exemption for mobile phones, effective 4pm Friday, Prime Minister
Najib Tun Razak said Friday.

"To harmonise tax treatment on Personal Digital Assistant (PDA) with Global
System Mobile (GSM) and ordinary mobile phones, it is proposed that mobile
phones be exempted from sales tax," said Najib, who is also Finance Minister,
when tabling Budget 2011 in Parliament Friday.

Currently, ordinary mobile phones are subject to 10 per cent sales tax,
whereas PDA and GSM, which may also function as mobile phones, are given sales
tax exemption under the Sales tax (Exemption) Order 2008.

Therefore, sales tax treatment on mobile phones and that of other equipment,
which may also function as mobile phones such as PDA with GSM, is not the same.

-- BERNAMA



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