Prepaid mobile now tax-free but only for Malaysians

PETALING JAYA: Mobile reload cards will be exempted from the sales and services tax (SST) beginning Sept 6, but only for Malaysians, the finance ministry announced today.

In a brief statement, Finance Minister Lim Guan Eng said this was due to the complications faced by telecommunication companies in switching to a different tax system.

“A different method for telcos will be announced later so that the government will not lose out in ensuring that customers get the full value of the reload amount,” he added.

This comes several days after Lim reiterated that mobile prepaid reload cards would not be subjected to SST.

He was reported as saying that there was no need for telcos to “make life difficult”.

This followed complaints by consumers who said their credit value was deducted when they topped up to account for the tax, which came into effect on Sept 1.