Eight million water users exempted from service tax hike - ministry

Eight million users of water supply services are exempted from the service tax hike which came into effect today, according to the Energy Transition and Water Transformation Ministry.

This comprises 87 percent domestic and 13 percent non-domestic consumers in Peninsular Malaysia and Labuan.

The ministry said 4.7 million users of sewage services in the peninsula and Labuan are also not affected by the increase in service tax.

“The government will remain committed and caring to ensure the people’s basic needs are prioritised.

“The ministry would like to remind the public to use water prudently, especially during the current hot and dry spell in most states,” it said in a statement today.

The service tax rate has been increased to eight percent from six percent, as announced in Budget 2024 tabled last October.

This move is part of the government’s efforts to improve the country’s financial resilience and reduce its budget deficit.

- Bernama

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