KUALA LUMPUR: The government is not ruling out the possibility of maintaining the sales and service tax (SST) rate for electricity and water bills, the Dewan Rakyat heard today.
Domestic Trade and Cost of Living Minister Datuk Armizan Ali said such a matter would be raised by the ministry in the next National Action Council on Cost of Living (Naccol) meeting scheduled on March 20.
The increase of SST, however, is expected to commence on March 1.
"The increase in SST rate was discussed in the cost of living implementation and monitoring committee chaired by the Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi last two weeks.
"There was also a specific paper (presented in the meeting) for us to examine the impact (on the increase of SST for electricity and water bills).
"Hence, we will raise the issue to further discuss and consider at the Naccol meeting scheduled for March 20," he said during minister's question time in Dewan Rakyat, today.
Armizan said this in response to a supplementary question from Ayer Hitam member of parliament Datuk Seri Dr Wee Ka Siong who enquired the minister on plans to maintain the SST rate for electricity and water bills, adding that both utilities were necessities.
Wee also urged the government to consider the matter as the tax would not apply to certain sectors, such as food and beverages as well as telecommunications.
In the 2024 Budget tabling last year, Prime Minister Datuk Seri Anwar Ibrahim announced that SST would be increased to eight per cent from the current six per cent starting March, this year.
To prevent burdening the people, Anwar who is also the Finance Minister said the increase will not apply to services such as food and beverages as well as telecommunications.
He said the government would also enforce the implementation of a Capital Gains Tax for the disposal of unlisted shares by local companies based on net gains at a rate of 10 per cent starting March 1.
Meanwhile, the government is expected to enact new legislation to implement a High-Value Goods Tax at a rate of five to 10 per cent on specific high-value items such as jewellery and watches, based on the threshold value of the goods.