Late last year, according to the budget announcement, Prime Minister Anwar Ibrahim mentioned that the SST rate for certain industries would increase from 6% to 8%. The increase in SST is crucial as it will help boost the country’s fiscal position.
Take note of 8% SST charge from March 1 if your electricity bill is above RM220!
According to local newspaper News Straits Time, the ministry has released a statement mentioning that families with electricity bills over RM220, equivalent to 660-kilowatt joule (kWj) would see an 8% SST charge in their bill. The increase in SST will reflect on the bill however, it’s worth noting that more than 85% of households have electricity bills that are not above RM220.
Source: Berita Harian
The silver lining of it is that households with less than RM220 electricity bill will not be affected by the SST increase. But, the increase of SST to 8% will surely affect over 1.2 million households. Breaking down the cost, an 8% tax on a RM220 bill would come up to RM17.60.
With that said, the added percentage of tax would bring the electricity bill to a total of RM237.60. Fortunately, treated water will not see an increase in SST. Food and beverage, as well as telecommunications industry will also not see an increase for the SST, but other industries like the entertainment industry will observe the increment.
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Also read: Budget 2024: SST Tax rate to increase from 6% to 8% for selected industries
