KUALA LUMPUR, March 31 — University students have complained that they will be charged the goods and services tax (GST) on their fees despite Putrajaya insisting that education is exempted from the tax.

Malay daily Sinar Harian reported students as saying that their costs will rise significantly as they have received notices of increase in school fees, room and board fees and miscellaneous charges, all due to GST.

“The government promised a few items and services are exempted from GST. Among them the health sector, public transportation sector and education,

“Yet, we doubt the effect of GST exemption on such services as service providers still charge GST on administration costs. Even though the user of the service is exempt from GST, the price of the service is still increased and university students are the victims,” Sinar Harian quoted president of the National Association of Muslim Students in Malaysia (PKPIM) Mohammad Fazril Mohd Saleh as saying.

Mohammad Fazril added that the reduced amount of National Higher Education Fund Corporation (PTPTN) loans being disbursed is also another burden on students, on top of the higher costs once GST is implemented tomorrow.

Sinar Harian reported last year that the total financing for PTPTN will be reduced, with public universities seeing a five per cent reduction and private universities seeing a 15 per cent reduction.

The GST is a consumption based tax charged on all taxable supply of goods and it will replace the existing sales and service tax (SST).

Several categories such as basic food items such as rice and flour; public transportation; healthcare and education have been classified as zero-rated and, as such, exempted from the GST.

Putrajaya has been under heavy public criticism over its plan to implement the GST tomorrow, amid claims that Malaysians would be unduly burdened by the broad-based consumption tax.

Last week, demonstrators submitted a list of 106 questions on GST during a protest at the Customs Department’s head office in Kelana Jaya, Selangor.

Nearly 80 people were arrested during the event, 25 of whom including two federal lawmakers were later charged.

Putrajaya will begin collecting a GST of 6 per cent starting tomorrow.