Proposal to exclude utilities from SST hike to be discussed at next Naccol meeting

Proposal to exclude utilities from SST hike to be discussed at next Naccol meeting

Domestic trade and cost of living minister Armizan Mohd Ali promises a thorough examination of the matter at next month’s Naccol meeting.

Domestic trade and cost of living minister Armizan Mohd Ali says the government is assessing the potential impact of the upcoming sales and service tax hike.
KUALA LUMPUR:
The proposal to exclude water and electricity bills from the upcoming sales and service tax (SST) hike will be brought to the national cost of living action council (Naccol) meeting for consideration next month.

Domestic trade and cost of living minister Armizan Mohd Ali said the government was assessing the impact and effects of the upcoming SST increase.

“For your information, matters related to the SST increase were discussed at the implementation monitoring committee meeting chaired by the deputy prime minister two weeks ago,” he told the Dewan Rakyat during minister’s question time.

“There is a special working paper to examine its effects and impact.”

Armizan was responding to Wee Ka Siong (BN-Ayer Hitam) who, in a supplementary question, urged the government to consider exempting water and electricity services from the 2% SST hike.

The SST rate is set to rise from 6% to 8%, starting March 1.

Wee previously questioned the rationale behind increasing the tax rate on utility bills while exempting other necessities like food and beverages, and telecommunications.

He said increasing the SST to 8% for utility bills will further burden consumers.

“God willing, the matter raised by Ayer Hitam (Wee) will be brought for review and presentation at the Naccol meeting scheduled for March 20 for further consideration,” Armizan said.

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