BY NOOR SYAHHIRA HADY & NURA V LORNA
KUCHING: The eight per cent sales and service tax (SST) for electricity consumption over 600kWh per month applies in Sarawak.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the decision to increase the SST rate applied to all states in Malaysia with effect from Mar 1 this year.
“So, we (Sarawak Government) also have to follow this decision,” he said when met by the media after witnessing the swearing-in ceremony of councilors for Gedong District Council at Hikmah Exchange Centre today.
Abang Johari added, although SST is applicable throughout the country, Sarawak has its own exemption regarding service tax.
“Looking at the implications from the legal perspective, we do not have to pay the service tax.
“We can make our own decisions (under the State List). However, service tax is subject to every state nationwide,” he said.
For the record, the SST rate for most services, including overseas- based digital services, will increase to eight per cent from the current six per cent.
It was also announced that the service tax on electricity is only applicable for usage of above 600kWh per month.
The increase in tax rates and taxable items was previously announced as part of taxation reforms in Budget 2024 as part of the government’s efforts to boost the country’s financial resilience while reducing its budget deficit.
