In Peninsular Malaysia, a total of 6.96 million users in the residential category, which represents 84.3% of all users, will not be affected by the upcoming tax reform for electricity services starting March 1. The Energy Transition and Water Transformation Ministry (Petra) announced that a service tax will only be applied to usage above 600kWj for electricity supply services.
According to a statement released by Petra, approximately 15.7% or 1.29 million consumers who use electricity exceeding 600kWj will see a slight increase in their monthly bills ranging from RM0.01 to RM45.48, which translates to 0% to 1.66% increment per month due to the hike in service tax rate.
The government revealed on February 28, 2024, that there will be a tax reform involving an elevation of the service tax rate from 6% to 8%, which will take effect from March 1 onwards.
As a measure to channel subsidies to those in need, Petra emphasized the importance of targeted subsidies and recommended consumers to refer to their monthly electricity bills to track their power consumption and the subsidies granted to them.
Consumers are encouraged to use the electricity tariff calculator available on the myelectricitybill.my website to estimate their future monthly electricity bill costs and to adopt energy-saving practices by utilizing efficient electrical appliances.
In order to reduce energy consumption, consumers are advised to conduct power usage audits, monitor and analyze their electricity usage, and identify areas where improvements can be made in gadgets, processes, and systems.
Furthermore, it is recommended for consumers to opt for electrical appliances with a four- or five-star rating for enhanced energy efficiency and to ensure regular maintenance of equipment to save on energy consumption.
Consumers can also benefit from the Net Energy Metering (NEM) Gomen and Nem Nova programs to minimize their electricity bill costs, as the ministry recently announced an additional quota of 100MW for NEM Rakyat and 300MW for Nem Nova. – Bernama
