During the hot weather, Malaysians will turn on the aircond to cool themselves off and seek some respite from the sweltering heat.
However, that comfort will soon come at an additional cost as the new 8% Sales and Service Tax (SST) will be kicking in starting tomorrow (Mar 1).
M’sians to pay 8% SST for electricity bill over RM220 a month
In a report by the New Straits Times (NST), the Finance Ministry has confirmed that consumers who use more than 600kWh a month will be levied a 8% SST charge starting Mar 1.
In other words, those who spend more than RM220 per month will have to pay the 8% SST charge for the additional consumption that exceeds 600kWh.
For example, if a household’s electricity bill for the month is RM260, the 8% service tax will be applied on the extra RM40, which amounts to RM3.20. This means that the total bill will be RM263.20, according to the TNB calculator.
Only 15% of consumers affected by tax
The Finance Ministry assured that only 15% of consumers across the country will be affected by the service tax.
It also added that the 8% SST will not be applicable for water bills.
The new tax is an increase from the previous rate of 6%, which is part of the government’s tax reform efforts to generate an additional revenue of RM3bil and strengthen Malaysia’s fiscal positioning following the tabling of Budget 2024 last year, reported The Star.
So the next time you’re looking to blast the aircond for hours, remember that it will now cost you even more to do so!
What do you think of this new service tax? Share with us in the comments!
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