Prepaid reloads are exempted from SST — reloading RM10 should get you RM10 credit

You may have seen news that telcos are charging Sales and Service Tax (SST) for reloads, thus giving users less credit than they paid for. In an SST briefing at Kota Kinabalu yesterday, Lim Guan Eng, our Finance Minister, stressed that reload vouchers were exempted from SST.

He further mentioned that there should be no deductions and telcos are not to charge SST to consumers. Consumers who purchased RM10 reload coupons should receive RM10 credit, as expected.

Lim Guan Eng is expected to meet telcos next week to discuss the issue, which means that we most probably won’t see full reload values until later this month.

Source: The Star

Pokdepinion: If telcos were to charge SST, it should be on the services provided, not the mobile credit. But not charging it at all is definitely preferable!