PETALING JAYA: The call for an exemption of the service tax hike on electricity and water charges grows louder ahead of its planned implementation this Friday (March 1), with consumer groups saying the rakyat is already burdened with a high cost of living.
Former Cabinet member Datuk Seri Dr Wee Ka Siong has reiterated his call for water and electricity charges to be exempted from the planned 2% hike on service tax.
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“It is only a few days before March 1 when the increase of SST from 6% to 8% comes into force.
“Although three sectors – food and beverage, parking and telecommunications – have been exempted, aren’t water and electricity basic needs that should also be exempted?” the Ayer Hitam MP asked in a Facebook video yesterday.
“I explained in my earlier videos the effect (this hike will have) on companies, commercial rentals and households.
“I appeal to the government not to look at these sectors as trivial and allow the exemptions, for which the people would be thankful,” he said.
Dr Wee added that he would keep raising these concerns in the Dewan Rakyat as a spokesman for the people.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, in response to Dr Wee, said water and electricity may be exempted from the tax rate hike.
“The special study was already presented during an internal ministry meeting about two weeks ago.
“The issue will be brought up for further study and consideration in the planned meeting with the National Action Council on Cost of Living,” he said in the Dewan Rakyat yesterday.
Federation of Malaysian Consumers Associations chief executive officer Saravanan Thambirajah welcomed the move to exempt basic utilities from the new tax rate, as the proposed hike will only further burden Malaysians.
“Recently, there was already an increase in the water tariff. The tax hike will only further burden consumers from the B40 and M40 groups,” he said, adding that consumers are already agitated with the extra costs.
Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman concurred, saying that Malaysians are struggling with the increasing cost of living and that water and electric charges should be exempt from a tax hike.
“It is right if the tax hike is not imposed on water and electricity, as the rakyat are still grappling with the high cost of living, besides the recent hike on tariffs.
“If the tax hike is still necessary, the government should find a better time, which is when the living costs have stabilised,” she added.
