Mobile Prepaid services will be exempted from SST starting 6 September |

Mobile Prepaid services will be exempted from SST starting 6 September

Posted:  September 5, 2018   By:    17 comments   

When SST took effect starting 1 September 2018, many prepaid users in Malaysia were unhappy that their reloads carry less value due to the 6% tax deduction. A RM10 reload would only give you RM9.43 of credit.

Lim Guan Eng had mentioned that prepaid was excluded from SST and telcos should give RM10 value for RM10 of top up. However, telcos had started deducting taxes to comply with the Sales & Services Tax Act 2018.

As highlighted earlier, prepaid services are actually subjected to 6% SST. This was documented by the Royal Malaysian Customs Department and all telcos have imposed SST for all prepaid reloads similar to postpaid and broadband services. So basically, telcos were merely following the directive by Customs when it comes to SST implementation.

After several reported outbursts through the media, the Ministry has finally issued a statement that prepaid services provided to Malaysians by telcos must be exempted from SST. The exemption which falls under Section 34(3)(a) of the Service Tax Act 2018 will be enforced starting tomorrow, 6 September 2018. Now it looks like all telcos will need to comply and you should be getting the full value starting midnight tonight.

So far there’s no mention about top ups made between 1-5 September since the exemption is only effective starting tomorrow.

UPDATE: We’ve been informed by a telco that there won’t be a refund as tax collected between 1-5 September goes to be government as part of the SST implementation. Those that have topped up during this period are given freebies in the form of free minutes or data.

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UPDATE 2: The Royal Malaysian Customs Department has released a new guide which mentions the service tax treatment on prepaid reload.

This confirms that SST is applicable for top ups made between 1-5 September 2018 and it is exempted for Malaysians starting 6 September 2018 onwards.

As mentioned before, we believe this issue could have been avoided if prepaid was exempted from the start.

What do you think? Let us know in the comments below.

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17 Comments for Mobile Prepaid services will be exempted from SST starting 6 September


Good and it back to basic… New government should look more alert on Rakyat benefits.


Dig a hole and let people jump inside.

Then rescue the people that fall in.

People all treat you as hero.


New government JUST TEST the Rakyat respond ! LGY… Can I call him a actor that plan this and act like a Savior now? All blame to telco and nothings wrong with his staff…


    agreed. Telcos received the legistation from Customs (MOF) and followed suit, (as published on their websites) but LGE seems to only blame TELCOS for not adhering. Like Hellooooo???


    His famous decimals point mistake & no one is responsible, Petron contract by Ministry of Finance & nothing to do with Finance Minister.

    Now Prepaid Reload SST is all Telco fault when custom is the one who put in black & white that there is 6% Service Tax.


You dug a hole and everyone fell down the hole.
After that rescue everyone from the hole.
Now everyone treat you as hero, asshole


hmmm…prepaid get exempted… but postpaid don't… why? because postpaid rich people used?? come on.. be fair. exempted all lah…prepaid and postpaid all still the same, only thing is 1 pay 1st and 1 use 1st.


unifi got exempted or not?


    It is only exempted for Unifi Mobile prepaid.


Dear valued customers,

Telekom Malaysia Berhad (TM) wishes to inform that in accordance with the implementation of Service Tax Act 2018, beginning 1st September 2018, the 6% Service Tax (ST) charges will appear in customers’ bill starting 1 September 2018, according to their accounts’ respective bill cycle.

Should you require further clarification, please contact us through [email protected] app, live chat at , Facebook (@weareunifi / @unifimobile​) and Twitter (@helpmeunifi​). For business customers, you can also contact your respective account executive for further clarification.

Thank you.
(source from tm website)

oh no…

Oral Udang

This bugger also impose SST on prawn. When people question he refuse to admit mistake.

“I tell you (sic) do you know what is Norway lobster, rock lobster, lobster crab? You don’t know so when I saw this I thought they were all luxury items so I ‘hantam’ put 10 per cent SST on them,” Lim said.


6% also complain better dont use.

Always say this 6% burdensome but if you reload RM30 a month, what is RM1.80 tax? Spent hundreds on smartphone, RM30 on reload, but RM1.80 is like killing them.




What about postpaid users?!


Slowly Slowly Tipu = SST

PH is slurping their own spit on GST 6% that has burdened the customer.

Not everybody is rich when using postpaid nor broadband. What a backward mentality to have the rakyat to get an internet with the higher prices while the speed of the internet nor quota is like a-s-shole.

How Gobind will respond to this when telco doesn’t even bother about his threat directed towards telco that still having their internet speed to be upgraded is pending until now?

    End Bee

    Hello Macai. Broadband prices already cut. 100mb/s from 300 now 129. Which tempurung are you hiding under?

Albert Mok

Except it didn’t happen. Bought an RM10 reload on 10 Sep and it’s still 9.43.