Saifuddin: PM should not belittle students' concerns on SST, tariff hikes

Summary

• Saifuddin Abdullah urges Prime Minister Anwar Ibrahim to not belittle university students’ concerns regarding SST and electricity tariff hikes.

• The PN MP argues that many students will still be affected by the increased costs of living that will result from this new policy.

Perikatan Nasional education portfolio head Saifuddin Abdullah has criticised Prime Minister Anwar Ibrahim’s remarks about university students’ grievances on the increased sales and services tax (SST) and electricity tariff hikes.

In a statement, Saifuddin described the comments as dismissive and belittling of the genuine concerns raised by the students.

The SST and tariff hikes, effective today, received widespread criticism – including from students who argued that it will further affect their living costs.

Saifuddin noted that the matter is not whether students must pay electricity bills or whether public universities would face higher tariffs.

“It reflects a much wider issue concerning the impact of rising costs of living that continue to affect the rakyat, including students.

“These increased taxes and tariff hikes are predicted to only be more burdensome,” Saifuddin (above) added.

Bernama reported yesterday that Anwar said the government upholds transparency and is prepared to accept any criticism regarding the taxation system, provided it is based on facts.

He stated that he could not, however, comprehend students' grievances regarding increased electricity tariffs, given that public universities are exempt from this new policy.

“If it’s true, then we need to fix it because public universities are exempt,” he said in his speech at a gathering with staff of the Prime Minister’s Department today.

“Such matters, when spread in the name of freedom, can become avenues for slander and verbal abuse. So, I hope brothers, sisters, younger friends or children, please provide facts. I have no issue with people complaining or offering criticism,” he added.

Wider impact

Saifuddin, however, lamented that the taxes and tariff hikes will have a wider impact on the overall supply chain across various sectors - as prices for food and basic necessities on campuses will also rise due to increased operational costs.

“Most students do not necessarily reside in their college accommodation on campus. Hence, those living off campus also have to account for rental, utilities, and transportation costs.

"Students are among those who are most affected by these hikes, as they do not have a fixed source of income, and usually rely on financial aid,” Saifuddin explained further, in urging the government to take seriously the increased burden of rising living costs.

Last month, the government announced a targeted review of the sales tax rate and the expansion of the service tax scope, which kicks in today.

Tenaga Nasional Berhad's new electricity tariff rates also take place today, with the base tariff increasing from 39.95 sen per kWh to 45.4 sen.

The adoption of the automatic fuel adjustment mechanism will save users up to RM10.80, depending on power consumption. Besides that, savings will be enjoyed by those who consume 1,000 kWh or less through an "energy efficiency incentive".

The electricity bills from this month onwards will display itemised billing, providing users with detailed breakdowns of all charges.

TNB announced the base electricity tariff rate hike in December last year, citing higher fuel costs as the main reason. Anwar had vowed that 85 percent of users would not be affected by the increase, saying it targeted only foreigners and the “maha kaya” (ultra rich).

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