PUTRAJAYA: Malaysians will not have to pay the Sales and Services Tax (SST) for mobile prepaid services provided by telecommunication companies, Finance Minister Lim Guan Eng announced today.
In a statement today, the ministry said all prepaid services provided to Malaysians by telco companies must be exempted from SST.
The exemption, which falls under Section 34(3)(a) of the Service Tax Act 2018, will be enforced beginning tomorrow (Sept 6).
"The exemption is necessary to overcome problems from these companies, which are facing difficulties to change their systems immediately.
"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 added.
Through the exemption, prepaid customers will receive the maximum credit value when they top up as they will no longer be charged SST, the ministry said.
The Finance Ministry also urged the telco companies to promptly act and comply with the exemption of SST for prepaid users.