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Finance Ministry: Mobile Prepaid Cards Are Exempted From SST

The ministry has assured that the SST is not applicable to mobile prepaid services.

Cover image via Shafwan Zaidon/Malay Mail

Malaysians will not be required to pay the Sales and Services Tax (SST) for mobile prepaid cards, the Finance Ministry said in a statement earlier today, 5 September

Image via Sinar Harian

According to the New Straits Times, the exemption, listed under Section 34(3)(a) of the Service Tax Act 2018, will kickstart tomorrow, 6 September.

"The exemption is necessary to overcome problems from these companies, which are facing difficulties to change their systems immediately," the statement reads.

The statement also called on telcos to abide by its rules, adding that customers should get their full credit value when topping with prepaid cards

"Other methods will be announced later for these telco companies so that the government will not lose out in efforts to ensure customers receive full value for the money they pay," it further explains.

Consumers had been complaining about getting less value when they reload. For example, a RM10 top up would only come with RM9.43 of credit after 6% tax deduction.

Image via 6GST.com

Finance Minister Lim Guan Eng lambasted telcos for the deduction, saying that they were "making lives difficult."

"Why are they (telcos) going to make lives difficult? Do they have no other work to do? We are meeting the telco companies. This one is no problem. Prepaid cards are the same (no SST)," he said as quoted by Malaysiakini last Sunday, 2 September.

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