No final decision on SST hike for electricity, water

Deputy Prime Minister Datuk Seri Fadillah Yusof said this is because there are pertinent issues, such as who will be entitled to the exemption, that needs to be discussed.

When asked on the whether the matter will be brought up during the upcoming Cabinet meeting, Fadillah, who is also the Energy Transition and Water Transformation Minister, said the Ministry of Finance is looking at the overall situation right now.

He told the media this after witnessing the signing of a financing agreement between Bank Islam Malaysia Bhd and Sand Town Solar Sdn Bhd, a subsidiary of Gading Kencana Sdn Bhd.

From March 1, the SST rate for most services, including overseas-based digital services, will increase to eight per cent from the current six per cent.

Currently, only food and beverage, telecommunications and vehicle parking services have been given exemption from the tax hike.

Previously untaxed services like karaoke outlets, delivery services, brokerage and underwriting services will now be subject to the SST.

The increase in tax rates and taxable items was previously announced as part of taxation reforms in Budget 2024 last year as part of the government's efforts to boost the country's financial resilience while reducing its budget deficit.

Meanwhile, Fadilah said his ministry was evaluating several proposals related to large-scale floating solar power supply schemes.

"Insha Allah (God willing), we will be approving a pilot project for this system and then open for applications for industry players who wish to participate," he said.

-- BERNAMA