KUALA LUMPUR: The Association of E-Money Issuer (Aemi), or e-wallet providers, is calling on the government to extend the sales and service tax (SST) exemption on e-wallet transactions under Budget 2025 to promote growth and inclusivity.
In a statement released today it said, the e-wallet industry is at the forefront of the country's digital transformation, and Aemi's key recommendation for Budget 2025 is aimed at propelling the industry's growth, accessibility, and its vital role in a more inclusive economy.
According to Bank Negara Malaysia, there are currently 49 non-bank e-money issuers in Malaysia.
"The e-wallet industry has been instrumental in advancing financial inclusion and digital transformation in Malaysia."
"Aemi members have played a pivotal role in delivering digital financial services to a diverse user base, including the B40 and M40 groups as well as micro-SMEs. These segments are integral to the nation's economy and stand to benefit significantly from accessible cashless services," it added.
Aemi said to sustain the momentum and ensure the widest possible access to digital financial solutions, Aemi believes it is essential to maintain policies that promote growth and inclusivity.
The association recognises the government's efforts to broaden the tax base for national development and trusts that these initiatives will continue to support the expansion of cashless services.
It said the current SST exemption has been crucial in making digital financial services more affordable, particularly for underserved communities, and Aemi is hopeful that an extension of this exemption will further foster digital inclusion.
Effective from March 1, 2024, the service tax rate was increased from 6 per cent to 8 per cent.