Gov’t Holds Talks with Malaysia Over Education Service Tax

The Minister of Higher Education, Labour and Skills Development, Dr Ali Haider Ahmed, has stated that the government will take measures to ensure Maldivian students studying in Malaysia are not burdened by a new tax introduced in the country.

Malaysia is set to impose a six percent service tax on private education services provided to international students from 1 July. The new tax will apply to private preschools, schools, colleges, universities, and language centres that serve non-Malaysian students.

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Dr Haider noted that the Malaysian government had provided only a week’s notice between announcing the tax and its implementation. He further highlighted that the decision had not been formally communicated to the Maldivian authorities, leaving no time to engage in advance discussions with Malaysian counterparts.

Despite the short notice, the Maldivian government is now pursuing the issue, recognising the significant number of Maldivian students pursuing education in Malaysia. The Minister assured that the government will do everything possible to prevent this tax from becoming a burden on both government-sponsored and privately funded students.

The tax forms part of Malaysia’s revised Sales and Service Tax (SST) framework. Under the new rules, private institutions that charge tuition exceeding USD 14,000 per year must register for the tax. In addition, all higher education institutions and language centres catering to international students are required to register, regardless of their turnover. Malaysian students will remain exempt from the new tax.