Debunking the SST Tax Myth on ATM Cash Withdrawals

A claim has been making the rounds on social media that cash withdrawals at ATMs are subject to an 8% Sales and Services Tax (SST). However, this claim has been debunked by various sources, including the Royal Malaysian Customs Department. According to the department, cash withdrawals at ATMs are not subject to SST. The SST is a consumption tax that is levied on the provision of taxable supplies of goods and services in Malaysia. It is charged on the value of taxable supplies made by a taxable person in the course or furtherance of their business. The tax is typically charged at a rate of 5% or 10%, depending on the type of supply. However, financial services such as cash withdrawals at ATMs are exempt from SST. This means that individuals who withdraw cash from ATMs will not be charged an 8% SST tax. The claim is believed to have originated from a misunderstanding of the SST regulations. It is possible that some individuals may have misinterpreted the tax rules, leading to the spread of false information. The Royal Malaysian Customs Department has clarified that SST is only applicable to taxable supplies of goods and services, and not to financial transactions such as cash withdrawals. The department has also reminded the public to be cautious when sharing information on social media to avoid spreading false news. In addition, the Association of Banks in Malaysia has also issued a statement confirming that cash withdrawals at ATMs are not subject to SST. The association has advised the public to verify information through official channels before sharing it on social media. The spread of false information can cause confusion and anxiety among the public, and it is essential to rely on credible sources of information. The Royal Malaysian Customs Department and the Association of Banks in Malaysia have urged the public to be vigilant and to report any suspicious or false information to the relevant authorities. By doing so, we can help to prevent the spread of misinformation and promote a more informed and aware community. In conclusion, the claim that cash withdrawals at ATMs are subject to an 8% SST tax is false, and individuals can withdraw cash from ATMs without incurring any SST tax liability.

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