Welcome relief for those spending under RM220 on electricity

 

T Saravanan, head of the Water and Energy Consumer Association of Malaysia and CEO of Fomca, says consumers should look at alternative sources of energy such as solar power. (Bernama pic)

PETALING JAYA: A consumer group has hailed the government’s decision not to raise the service tax for households that use less than 600 kWh of electricity as a welcome relief.

T Saravanan, who heads the Water and Energy Consumer Association of Malaysia, said some 85% of consumers would not see an increase in their electricity bills.

The increase in service tax from 6% to 8%, with the exemption of certain services, came into effect on March 1.

Exemptions are given to consumers who use less than 600 kWh or spend under RM220 a month on electricity.

However, Saravanan said these consumers should do their part to conserve electricity.

“They need to be smart. Obviously, when the weather is hot, it could lead to higher electricity consumption but there are ways to avoid this, like improving the ventilation in the house,” he said.

Saravanan, who is also CEO of the Federation of Malaysian Consumers Associations, said the increased service tax rate gave consumers an opportunity to look into alternative sources of energy such as solar power.

“The government has offered incentives to switch to solar panels and is encouraging consumers to use energy-saving devices,” he said.

Last year, economy minister Rafizi Ramli said the government intended to give households the option to lease out their rooftops in return for a monthly income, which could also help them lower their electricity bills.

Treated water supply services are also exempted from the increase in service tax. Others include food and beverages, telecommunications, parking as well as logistics services. - FMT