MCA today urged the government to decide on sales and service tax (SST) hike exemptions on water and electricity charges.
As the SST percentage will be officially increased from 6% to 8% from March 1, 2024, MCA said a decision must be made soon to avoid placing additional burdens on the public.
“Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the National Action Council on the Cost of Living (Naccol) will meet on March 20, 2024, to discuss a possible exemption for utilities from the SST hike.
“However, as the SST adjustment will begin on March 1, 2024, the cabinet should decide on this matter as soon as possible,” said MCA vice-president Datuk Seri Wee Jeck Seng.
He pointed out that MCA had asked the government to review the 2% SST hike for water and electricity tariffs more than once.
“Our party hopes the government will prioritise the well-being of the people and accept the recommendations put forth by MCA,” he said.
He said that the increase may not be that steep, but water and electricity are the most basic needs for people’s livelihoods whether for people’s daily living, or businesses and manufacturers from all segments of society.
“Therefore, this SST hike will inevitably trigger a chain reaction and its impact will be extremely far-reaching and widespread,” he added.
In addition to the hike in utility bills due to the SST upward adjustment, the extra costs incurred by merchants and manufacturers alike are often passed on to consumers, he added.
“This indicates that the SST increase in utility bills bears multiple impacts on the general public.
“As the government exempts parking and communication fees from the 2% SST hike, considering that water and electricity are the most basic needs, these reasons become even more pressing for the government to exempt utilities from the SST increase,” added Wee. – The Vibes, February 28, 2024
