Waiver for power, water bills SST hike not decided

KUALA LUMPUR: The government has not made a decision on the exemption of the planned sales and service tax (SST) hike for water and electricity bills, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said this is because there are pertinent issues that need to be discussed first, such as who would be entitled to the exemption.

When asked whether the matter would be brought up during the next Cabinet meeting, Fadillah, who is also the energy transition and water transformation minister, said the Finance Ministry is currently looking at the overall situation.

He was speaking after witnessing the signing of a financing agreement yesterday between Bank Islam Malaysia Bhd and Sand Town Solar Sdn Bhd, a subsidiary of Gading Kencana Sdn Bhd.

From March 1 the SST rate for most services, including overseas-based digital services, will increase to 8% from the current 6%.

At present, only food and beverage, telecommunications and vehicle parking services have been given exemption from the tax hike.

Previously untaxed services like karaoke outlets, delivery services, brokerage and underwriting services will now be subject to the SST.

The increase in tax rates and items that will be taxed were announced last year as part of taxation reforms under Budget 2024, as an initiative by the government to boost the nation’s financial resilience while reducing its budget deficit.

Meanwhile, Fadilah said his ministry is evaluating several proposals related to largescale floating solar power supply schemes.

“Insha Allah, we will be approving a pilot project for this and then call for applications from industry players who wish to participate.”