RM500 Tax Relief For Broadband Users

Broadband users relieved over RM500 tax relief

BROADBAND Internet users in Malaysia are relieved with the RM500 tax relief granted to them, but they want the Government to go one step further – and compel the service providers to improve the quality of service.

Random interviews revealed that most agreed that the tax relief would help boost the national broadband penetration rate.

But they feared that service quality might suffer with a sudden surge in subscribers.

“I am overjoyed that the Government is going to subsidise my broadband service,” said a housewife who asked to be identified only as Adelina.

“But if my Internet speed is going to stay put as it is now, I think the Government won’t be getting its money’s worth.

“It would be a waste of public funds,” she said.

A media relations executive, who wanted to be known as Belinda, wanted the Government to spend more to get Internet service providers (ISPs) to improve broadband speed.

“If broadband quality goes up markedly, people will be queing up to subscribe to the service,” she said.

“There would then be no need to dangle tax relief as a carrot, she added.

Actor Fish Fazil hoped that any increase in broadband service subscribers would spur ISPs to improve services and infrastructure.

“Broadband is becoming an essential utility now, like electricity and water,” he added.

The broadband tax relief incentive will be implemented from January 2010 to 2012. The current broadband penetration rate in Malaysian households is 26%, against 88% in Singapore and 95% in South Korea.