No SST for Mobile Prepaid

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Users will get full reload value.


The government has assured prepaid handphone line users that they will receive the full amounts paid to reload their mobile credit.

Finance Minister Lim Guan Eng, who said this, dismissed claims circulating on social media that reload vouchers were not exempted from the Sales and Service Tax (SST).

Lim also criticised those politi­cising the issue, including opposition parties.

“If there are opposition parties which use this issue as political material, tell them that prepaid card buyers who purchase RM10 vouchers will get RM10 of mobile credit.

“There will not be any deductions. It is easier for telcos not to charge (SST) in the first place instead of giving rebates,” he said.

It was reported that the Ministry of Communications and Multimedia would meet with telcos on Monday.

Prepaid services were among over 5,000 items listed for exemption under the new tax regime, but prepaid mobile users complained that credit value was deducted to account for the SST when they bought top-ups.

The issue prompted allegations that the new Pakatan Harapan government had reneged on its pledge to bring cost of living down even as they introduce the SST.

SST charges six per cent for selected services and five to ten per cent for product sales.

Like the GST, customers lashed out at the Pakatan Harapan administration for “lying”.

On social media, angry consumers made comparisons between SST and GST and said the new charges made no difference between the two tax systems.

“This is a blatant lie. You listed prepaid top-ups as one of those exempted but here we are getting charged,” said one Facebook user.

“It just reeks of lies,” said another user.

“It goes to show this government wasn’t as truthful about SST.”