New: 8 percent SST for ELECTRICITY consumption over 600kWh

An 8% SST will be charged on electricity usage of more than 600kWH per month, effective March 1, 2024 (yesterday) says the Finance Ministry which adds that the new tax imposed is expected to affect about 15% of domestic electricity users. “For electricity, the SST is only applicable for usage above 600kWh. Almost 85% of users fall below this threshold and therefore will not be affected,” the ministry said in a statement on Wednesday (Feb 28). The service tax does not apply to treated water, it says.

SST on electricity usage

Effective March 1, SST in Malaysia will be revised to 8% from 6%. The change, which is expected to generate an additional revenue of RM3bil for the government, is part of the government’s tax reforms aimed at strengthening the country’s fiscal foundation, bringing the economy back on track.