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Home News Internet

No SST For Prepaid Reloads From 6 September Onward

by Sharil
September 5, 2018
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The government has confirmed that prepaid reloads will be exempted from paying the new Services and Sales Tax (SST) from 6 September. The announcement comes amidst complaints of the SST eating into prepaid reload values. Since the new tax regime was implemented on 1 September.

Quoting the Ministry of Finance official statement, the telco companies are facing difficulties trying to change their systems in order to to adopt the SST into its pricing mechanisms. The government will announce future measures to collect tax from the prepaid reloads so that telcos will not be financially affected by this exercise.

Pengecualian Cukai Perkhidmatan Ke Atas Perkhidmatan Telekomunikasi Pra Bayar pic.twitter.com/emrutWeY26

— Ministry of Finance🇲🇾 (@MOFmalaysia) September 5, 2018

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Customers buying prepaid reloads from 6 September onwards should be getting 100% of the total value they pay for. The Ministry of Finance will not tolerate any telco that does not promptly act to comply with the SST exemption.

Many were caught unaware with the SST implementation for prepaid reloads. As far as future measures on the tax collection for prepaid reloads go, it is still unclear if the pricing will go up for reloads or if the telcos will absorb the SST completely.

(Source: Ministry of Finance)

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