Decisions on applying or removing the 10% surcharge for the use of Touch n’ Go pre-paid cards at places such as shopping centres or parking buildings lies solely with the service providers, according to prime minister Datuk Seri Najib Abdul Razak.

He said that while Touch n’ Go was in discussions with service providers like car park operators to negotiate with them to absorb the cost of providing and maintenance of the TNG (Touch n’ Go) system, the decision to place the service charge for the use of TNG cards lies within the evaluation and discretion of the service providers, theSundaily reports.

This was in a parliamentary written reply to a question by the Lembah Pantai member of parliament, asking whether or not using the Touch n’ Go card as a medium of sales and purchase will incur additional cost via a service charge being levied on customers. Many TNG system providers do not impose additional charges for the use of these cards at places such as toll booths and for grocery purchases, he said.

“Nevertheless, there are certain service providers like car park operators who place a surcharge for the use of TNG. This is to bear the operational and management of the facility at certain locations which offer the TNG facility. Yet, there are also service providers who choose not to place the additional charge on TNG card users and absorb the cost of operating the system instead,” Najib added.

In May, Touch n’ Go said it supported a no-surcharge-fee business model and that it was negotiating with service providers for the waiving of the surcharge, and that the surcharge was intended as a cost recovery mechanism mutually agreed upon by parking operators, building owners, system integration vendors and Touch ‘n Go.