Increased service tax for electricity will affect only 15% of consumers

 

The service tax for electricity will be increased to 8% from 6%, but only for usage above 600kWh.

PETALING JAYA: About 85% of consumers nationwide will be exempted from the increased service tax for electricity bills, the finance ministry said.

In a statement, the ministry said the 8% service tax, an increase from the previous 6%, would only be applicable for usage above 600kWh.

Also exempted from the new rate is treated water supply services, it said.

“The government does not anticipate the changes to engender sharp price increases that would lead to an economic shock as the small two-percentage increase affects selected taxable services.”

The SST rate is set to rise starting March 1.

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