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If Your Electricity Bill Is More Than RM220 A Month, Prepare To Pay 8% SST From 1 March

The Finance Ministry expects that 85% of users will not be affected by the tax hike.

Cover image via New Straits Times

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If your electricity bill comes up to more than RM220 a month, you will have to start paying 8% service tax starting 1 March

According to the New Straits Times, the Finance Ministry confirmed the 8% Sales and Service Tax (SST) charge on users with electricity usage exceeding 600kWh a month.

This would mean that only users with a bill of roughly more than RM220 a month will see an 8% service tax charged on the additional consumption past 600kWh.

For example, according to the TNB Calculator, if a user has a bill of RM250, 8% SST will only be charged on the additional RM30, which is RM2.40. The total bill is estimated to be RM252.40.

Image via Berita Harian

The ministry said the new tax imposed is expected to affect only 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, 28 February, reported The Star.

It added that water bills will be exempted from the SST hike.

Effective 1 March, SST in Malaysia will be revised from 6% to 8%

Prime Minister Datuk Seri Anwar Ibrahim announced the tax reform as a way of boosting the country's fiscal position during the tabling of Budget 2024 last year.

Malaysians can also expect to pay more for hotels and online services starting March:

Last year, a Malaysian woman finally found out the reason why her home's electricity bills have been unfairly high:

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