Media statement by Dr. Hiew King Cheu in Kota Kinabalu on Saturday, 10^th September 2011:

Prepaid telephone card additional 6% service tax unfair and blood sucking

The newly implemented to start on the 15^th of September the 6% service tax charged by the telephone companies is unfair and a burden to every telephone prepaid reload card users. The general respond to this increase by adding on a 6% service tax on the prepaid amount is not welcome by the consumers and they said it is a way for the full benefit of the telephone. The 6% tax is solely for the phone companies and not for the government coffer, and this means that the phone companies will have the full benefit of enjoying additional income of 6% for the money they collected. This is paid through the pocket of the phone users. The 6% means billions of ringgit added to the already high profit of the telephone companies. Some even called it as a "blood sucking" act, this is because the consumers have no choice but to pay or without the use of the compulsory telephone service.

This sudden increment is not approved by the Parliament but it is just an action taken by the telephone companies through the clauses set in their agreement with the government where by they are authorized to make such adjustment. The Prime Minister said he had no prior knowledge which everyone said is unbelievable and what is the PM doing all this while? He should know and can not just simply say he doesn't know about this 6% tax imposed.

It is rather sad that after 48 years of Malaysia, we are still having this type of unfair situation arising everyway. The BN government had not protected the interest of the people but keep on increasing their burden and hardship. The action by the telephone companies is classified as a case that is out of the control of the Parliament and the government, and this is a solid proof that the telecommunication agreement during the awarding and signing was inserted with the clauses that will benefit the companies but no the people. This is surely a loop-sided arrangement and one sided to help the companies. In the mean while the people have no say over it. This totally demonstrated the BN is not having the people in their mind.

In other country like Hong Kong government and Macao is giving to their people everyone HK$ 6,000, and yet in Malaysia the government is allowing the telephone companies to squeeze money from the people's pockets.

The telephone companies can forced the people to pay the 6% service tax and enjoy the benefits and while the people have no say but forced to pay or without the use of the phone service. This is a case of unfairness and inconsiderate at large.

I demand the BN government to intervene and stop the additional 6% service tax imposed by the telephone prepaid card service. The voice of the people must be heard and the government can resolve this matters. It is sure that the Parliament will debate on this issue during the coming sitting and Pakatan Rakyat MPs will definitely make a strong stand to stop this increment in the tax added. When it is unfair, it is unfair, and no doubt about it. This has to be stopped permanently, we don't want to see our poor people become even poorer and the rich become richer.

* Dr Hiew King Cheu, MP for Kota Kinabalu