Only mobile Prepaid exempted from SST — MOF
Following the clarification by the government that mobile prepaid reloads are exempted from SST starting on 6th September, many now questions why then, is mobile postpaids not exempted from it as well.
In response, Malaysia’s Finance Minister Lim Guan Eng stated that it is because the majority of mobile prepaid users are coming from low-income or less privileged group, while the more financially affluent ones will go for postpaid. Therefore, mobile postpaid packages are still subjected to sales tax of 6 percent.
He stated this when he is attending the third brief of Sales and Service Tax in Kuala Lumpur. Malaysia is also the only country to have SST exempted from mobile prepaid reloads, added Lim.
Lim also emphasizes that not all are exempted from the SST when reloading mobile prepaids. Only Malaysians are eligible for the exemption. Consumers will have to show their identity credentials when purchasing reload cards from now on while reloading via telco apps are also subjected to nationality checks from the database.
What do you think of this? Do you agree that most prepaid users are underprivileged and postpaid users are more well-off in comparison?