Reverse SST on scholarships and education aid

THE decision by the Royal Malaysian Customs Department to impose the 6% Sales and Service Tax (SST) on scholarships, bursaries and tuition waivers in private and international schools is misguided. This move is fundamentally unfair and punishes students and educators who rely on financial aid, treating educational support as a taxable luxury when it is in fact a lifeline.

For many B40 and M40 students, scholarships are the only pathway to quality education. Taxing these awards imposes an added burden on families already struggling with costs. A student who receives a 50% scholarship on an RM62,000 annual fee still gets taxed RM3,720 based on the entire gross fee amount. That is both illogical and unjust.