Finance Ministry announces exemption of scholarships and student loans from taxation.
In a statement made on September 5, 20XX, the Deputy Finance Minister, Lim, clarified the government's approach to expanding the tax base in the education sector. According to Lim, who is also the Tanjung member of parliament, the scope of service tax will only involve private primary and secondary schools for fees exceeding RM60,000 per student per year, starting July 1, 2025.
Out of 569 private schools registered with the Ministry of Education nationwide, only 27 schools charging fees above the specified amount will be affected by this tax. The government has made it clear that all scholarships, education loans, and fee exemptions are not included in the scope of service tax.
Lim reaffirmed the government's commitment to prioritizing the well-being of the people in every policy implemented, adhering to the principle of 'people first'. She urged the public not to be misled by false statements and to verify doubts through the official channels of the Ministry of Finance or the Royal Malaysian Customs Department.
MCA deputy president Datuk Mah Hang Soon made a statement regarding the implementation of service tax in the education sector on Instagram. Mah described the imposition of sales and service tax (SST) on scholarships, sponsorships, and fee exemptions at private and international educational institutions as unfair and unjust.
It is important to note that the scope of service tax in the education sector starting July 1, 2025, will only involve higher education for non-Malaysian students. There are no search results indicating which private schools in Malaysia will be subjected to a service tax from July 1, 2025, based on annual fees exceeding RM60,000.
Lim did not comment on the specifics of the tax exemptions for scholarships, educational loans, and fee exemptions mentioned earlier. The government has also confirmed that it will not impose any service tax on educational loans received by Malaysian citizens or on fee exemptions received by Malaysian citizens.
In response to Mah's Instagram post, Lim's statement aims to provide clarity and dispel any misunderstandings about the government's approach to the service tax in the education sector. The limited scope of the tax is intended to minimise the impact on the Malaysian education system and the well-being of the people.
