Premier: 8 pct SST on monthly electricity usage more than 600kWH applies to Sarawak

Datuk Patinggi Tan Sri Abang Johari Tun Openg (file pic)

By Chris Bishop, Marlynda Meraw & Shikin Louis

KUCHING, March 4: The new rate of eight per cent sales and service tax (SST) charged on electricity usage of more than 600kWH per month applies to Sarawak, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the federal government’s decision to increase the SST from six to eight per cent, effective March 1, 2024, is applicable to all states.

“Therefore, on electricity, Sarawak will also have to follow suit,” he told reporters after the swearing-in ceremony of Gedong District Council at Hikmah Exchange here today.

Nevertheless, Abang Johari stressed that there is an exception for Sarawak, where she can make her own decisions on certain matters that are under the State List.

“However, tax is actually… we must look at its implication from the perspective of law.

“If we decide to give an exemption, we will not pay the service tax. However, the service tax applies nationwide,” he added.

Under the 2024 Budget, Prime Minister Dato Seri Anwar Ibrahim has announced that Malaysia’s SST rate will increase from six to eight per cent effective March 1, 2024.

On Feb 28, the Ministry of Finance (MOF) said in a statement that the new rate only focuses on discretionary activities and business-to-business services and will not apply to key essential services such as food and beverage (F&B), telecommunications, parking and logistics.

It also announced that the service tax is only applicable for electricity usage above 600kWh, which will not affect almost 85 per cent of electricity users nationwide. Water supply services will also be exempted from the tax. — DayakDaily