MALAYSIAN PM NAJIB URGES TELCO TO RELOOK AT 6 PCT SERVICE TAX MOVE

KUALA LUMPUR, Sept 10 (Bernama) -- Prime Minister of Malaysia Najib Tun
Razak Friday called on telecommunication companies to relook at their decision
to impose a six per cent service tax on its prepaid mobile phone users each time
they reload or buy a starter pack, saying that it would be a burden to them.

He said the decision had been taken by the telecommunication companies
themselves and that the government had not approved any move to impose the
service tax.

The move is not a popular one, considering the views and feedback received
from consumers, he said.

The main focus now should be on reducing the burden of the rakyat and not
about decisions to increase their burden, the Prime Minister said.

There have been many feedbacks and it is not a popular move and difficult
for the people to accept, he told reporters after launching Maybank's new logo
at Menara Maybank here Friday.

"I hope the telecommunication companies would be able to restudy their move
as at the present times, we want to reduce the burden of the people."

The people currently have to deal with the cost of various expenses while
the prices of some foodstuff have shot up as well, Najib said.

Najib, who is also Finance Minister, was commenting on a joint statement by
the telecommunication companies yesterday, which announced the decision to
impose the six per cent service tax on pre-paid products effective next
Thursday, Sept 15.

The statement had said that the service tax was not something new and that
the telecommunication companies had been absorbing them since the introduction
of pre-paid mobile service in 1998.

With the service tax, the cost of a RM10 pre-paid reload would now come with
an extra 60 sen payment from the consumers.

Meanwhile, Maybank Friday launched its new logo featuring the Malayan tiger
in an even more prominent way in line with its plan to expand into a global
banking group.