I strongly refute Mah Hang Soon’s recent remarks. Scholarships have never been subject to the Sales and Services Tax (SST). His claim is not only misleading to the public but also raises serious doubts about his understanding of the most basic principles of taxation.
The email shown by Mah Hang Soon which was issued by the Customs Department to higher education institutions is very clear. SST applies to tuition fees, not to scholarships. In other words, regardless of whether a student receives a full or partial scholarship, the tax is imposed on the total tuition fee, never on the scholarship itself.
This is a very simple logic. A scholarship is a gift to the student, not a discount, and certainly not a service. If tuition fees increase due to SST, then the scholarship amount must be adjusted to cover that increment. But to say that scholarships themselves are subject to SST is completely false.
I must emphasize again that SST on tuition fees is a government tax policy and the Customs Department’s email merely reiterates this. Scholarships, however, are entirely different in nature. They are educational assistance and a form of support and encouragement from governments, institutions, or individuals. To claim that such a gift is taxed is utterly absurd.
By confusing the concepts, Mah Hang Soon twisted “tuition fees being subject to SST” into “scholarships being subject to SST.” This is a gross misrepresentation. Not being able to distinguish such a basic tax principle, yet publicly attacking others, is nothing short of embarrassing.
I call upon Mah Hang Soon to immediately retract his false statements and issue a public apology to parents, students, the education sector, and the Malaysian people. Education is an issue of fairness and confidence in society. As a former deputy minister, he should be cautious and responsible in his words, not reckless in pursuit of attention.