Here's A List Of Everything That Will Cost More Starting 1 March
This is due to the new sales and service tax (SST) rate, which has been raised to 8%.
Starting 1 March, Malaysia's sales and service tax (SST) rate will increase by 2%, rising from the previous rate of 6% to the new rate of 8%.
The increase in SST will lead to higher costs for consumers on taxable services such as electricity and streaming platforms.
The tax increase was announced during the tabling of the Budget 2024 last year.
Editor's Note: An earlier version of this story incorrectly listed water as one of the items affected by the 8% SST. However, the government has confirmed that water bills will remain exempted.
So, what new services will be subject to service tax?
- Karaoke centre services
- Brokerage and underwriting services for non-financial services such as ship/aircraft brokerage, commodities and real estate
- Logistics services, and
- Maintenance or repair services
However, the following services will not be subject to the new tax rate and remain at 6%.
- Food or beverage preparation services
- Telecommunication services (phone bills and Internet bills)
- Vehicle parking space provision services, and
- Logistics services
The table below provides an overview of the changes:
Additionally, platforms like Shopee, Google, and Taobao have also announced an SST increase for their services
Car prices may also increase
Your electricity bill will also be affected if it exceeds RM220 a month:
Meanwhile, these other services are expected to be affected too:
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