KUCHING: Sarawak will adhere to the new Sales and Service Tax (SST) rate of eight per cent imposed on electricity consumption exceeding 600 kilowatt-hours (kWh) per month, the Sarawak Public Communications Unit reported.
Sarawak Premier Tan Sri Abang Johari Tun Openg said this adjustment comes in the wake of Finance Minister Datuk Seri Anwar Ibrahim's 2024 budget presentation last October, indicating an SST hike that affects all Malaysian states.
"This decision aligns with our policies in Sarawak but indeed encompasses all states across Malaysia comprehensively.
"We will examine its legal implications and, should there be an exemption, we will not be subjected to the service tax. However, the rate has been set nationally," he said after the swearing-in ceremony of the Council Members of the Gedong District Council here yesterday.
On Feb 28, Treasury secretary-general Datuk Johan Mahmood Merican was quoted stating that over 80 per cent of domestic users, whose monthly electricity consumption does not exceed 600 kWh, would continue to enjoy a zero service tax on their electric bills.
Only domestic households consuming more than 600 kWh of electricity per month will be subjected to the revised service tax rate of eight per cent, effective from March 1, 2024.
However, the decision to exempt water and electricity bills from this increase is yet to be fully finalised at the federal government level, leaving room for further announcements and clarifications.