PKR director of strategy Mohd Rafizi Ramli questioned if the government's decision to have telecommunication companies put off the six percent service tax on prepaid users is just an election ploy.

He said he was relieved that the telcos were not imposing the tax but thought it would be wise to exercise caution.

"Does this mean the suspension of the tax is only till the 13th general election to fulfil the prime minister's wishes?" he said.

rais yatim pc 020709 02 Earlier today, Information, Communications and Culture Minister Rais Yatim ( left ) announced that the government had struck an agreement with four major telcos in the country to continue absorbing the six percent tax.

The more controversial and comprehensive Good and Services Tax (GST) was put off indefinitely after fierce opposition last year, presumably until after the next general election, as the government had reiterated its intention to proceed with it.

However there was no indication from the government or telcos if the prepaid service tax will be imposed on consumers further on down the road.

Rafizi criticised Prime Minister Najib Abdul Razak's handling of the situation.

"My opinion is that Najib's handling of the people's anger towards the tax sends the wrong signal to businesses. I'm sure many other companies that collect services taxes according to the law are worried that they would get a phone call from the Prime Minister's Office at any time to suspend their taxes."

Najib had on last Friday denied government responsibility over the proposed tax and asked telcos to review the decision as it burdened the rakyat.

Instead, Rafizi called on the prime minister to exempt telcos from the six percent tax for pre-paid services and reduce the overall cost for end-users.

"Najib has the chance to repair his image if he has the courage to announce a tax exemption for prepaid services which is used by the majority of young and low income groups. The reduction in telecommunication cost will help alleviate the rakyat's cost of living," he said.