MANY social media users have expressed concern over claims on TikTok that cash withdrawals from ATMs will soon be subject to an 8% Sales and Service Tax (SST).
The videos showed people speculating about potential extra fees for ATM use, with some claiming that withdrawing RM1,000 could incur RM80 in taxes.
Will basic ATM transactions be taxed under the expanded SST?
Verdict:
FALSE
Basic ATM transactions do not incur SST.
This fact was confirmed by the same social media users who had expressed concern when they saw the earlier claims.
One Facebook user, Harun Mohd Shah, shared a clip of himself withdrawing cash without any such fee imposed, stating that the alleged charge was simply not there.
Another, Abdullah Zawawi Ibnu Wahab, mentioned that he "tested" an ATM one early morning, ready to witness the purported surcharge, but found no evidence to support the claim.
"There are those who even recorded a video and queued up early, all because they believed fake news," he remarked, adding that everyone ended up relieved that there was no such thing as 8% SST on ATM cash withdrawals.
The confusion stems from statements that SST would be extended to certain financial services, which have prompted misunderstandings about which services might be taxed.
However, Treasury Secretary-General Datuk Johan Mahmood Merican clarified that the 8% SST only applies to specific fee-based financial services, not to typical day-to-day banking.
"If one reads the banking association’s statement," he noted, "they mentioned only certain transactions, usually tied to commissions, would attract SST.”
The Association of Banks in Malaysia (ABM), along with other banking associations, reassured the public that normal banking activities, including basic ATM withdrawals, deposit services, and routine transfers, do not fall under any new tax scheme.
"Ordinary banking transactions remain free from this tax," the associations confirmed.
MyCheck highlighted that the scope of service tax expansion largely concerns asset management or investment-based transactions that involve specific fees or commissions.
Bank customers who require more information about upcoming changes are advised to consult their financial institutions directly rather than relying on hearsay.
Authorities also urge the public to avoid spreading unverified news that could cause unnecessary panic.
References:
1. https://www.mycheck.my/more.php?id=2442217
