KUALA LUMPUR: YTL Communications Sdn Bhd today announced that all purchases of YES reload by Malaysian prepaid subscribers will be exempted from Sales and Service Tax (SST).
However, non-Malaysians will still continue to pay the service tax of six per cent.
“It is in the DNA of YES to drive positive change for Malaysians by bringing world class technology of 4G Long-Term Evolution (LTE) and Voice-over-LTE (VoLTE) at competitive pricing to all walks of Malaysians in rural, semi-urban and urban centers,” it said in a statement today.
YTL Communications said it lauds the latest efforts by the government, Finance Minister Lim Guan Eng and Communications and Multimedia Minister Gobind Singh Deo for the exemption, aimed at ensuring Malaysians will receive full value of their prepaid services which will benefit the lives of the nation.
“YES will work closely and support the latest guidance from the ministries in the spirit of lessening the burden to the rakyat,” it said.
On Sept 5, Lim announced that Malaysians will not have to pay the SST for mobile prepaid services provided by telecommunication companies.
The ministry all prepaid services provided to Malaysians by telco companies must be exempted from SST.
The exemption, which falls under Section 34(3)(a) of the Service Tax Act 2018, has been enforced beginning Sept 6.
"The exemption is necessary to overcome problems from these companies, which are facing difficulties to change their systems immediately.
"Other methods will be announced later for these telco companies so that the government will not lose out in efforts to ensure customers receive full value for the money they pay," it added.
Through the exemption, prepaid customers will receive the maximum credit value when they top up as they will no longer be charged SST, the ministry said.
The Finance Ministry also urged the telco companies to promptly act and comply with the exemption of SST for prepaid users.