“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 today.
Currently, ordinary mobile phones are subject to 10 per cent sales tax, whereas PDAs with 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.
