News

WELCOME RELIEF FOR THOSE SPENDING UNDER RM220 ON ELECTRICITY

PETALING JAYA, March 5 (Bernama) -- The government’s decision not to raise the service tax for households that use less than 600 kWh of electricity is a welcome relief, the president of a consumer group said.

T Saravanan, who heads the Water and Energy Consumer Association of Malaysia, said some 85 per cent of consumers would not see an increase in their electricity bills.

The increase in service tax from 6 per cent to 8 per cent, which exempts certain items, came into effect on March 1. Those exempted include consumers using less than 600 kWh or spending less than RM220 a month on electricity. 

However, Saravanan said they should do their part to conserve electricity.

“They need to be smart. Obviously, when the weather is hot, it could lead to higher electricity consumption, but there are ways to avoid this, like improving the ventilation in the house," he said.

Saravanan, who is also the Federation of Malaysian Consumers Associations CEO, said the increased service tax rate provided consumers an opportunity to look into alternative sources of energy, such as solar power.

“The government has offered incentives to switch to solar panels and is encouraging consumers to use energy-saving items,” he said.

Last year, economy minister Rafizi Ramli said the government intended to give households the option to lease out their rooftops in return for a monthly income, which could also help them lower their electricity bills.

Treated water supply services are also exempted from the increase in service tax. Others include food and beverages, telecommunications and parking. 
-- BERNAMA

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