M'sia moves to make cell phones cheaper

Mobile phones and other wireless devices will be 30 percent cheaper in the near future as the government scraps a 20 percent import duty and 10 percent sales tax previously imposed on these equipment.

KUALA LUMPUR--Mobile phones and other wireless devices will be 30 percent cheaper in the near future as the government scraps a 20 percent import duty and 10 percent sales tax previously imposed on these equipment.

Domestic Trade and Consumer Affairs Minister Muhyiddin Yassin was quoted by The Star as saying that his ministry would be meeting distributors and importers of these devices soon to discuss the new pricing structure.

"We will be implementing the tax reduction as soon as possible and since they (distributors and importers) do not have to pay duty anymore, we expect them to sell their phones at a lower price," he said.

He added this move to make wireless devices duty-free was to eradicate the sale of smuggled mobile phones which have flooded the market.

In an immediate reaction, mobile phone manufacturer Motorola's personal communications sector division (PCS) country manager Goh Thih Liang said the government's step would make cellular phones more affordable to consumers.

"The move comes at an opportune time when wireless communications is no longer viewed as a luxury commodity but a real necessity for Malaysians," he said.

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