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Eight million users exempted from SST hike for water services

Publish date: Fri, 01 Mar 2024, 10:22 PM

KUALA LUMPUR: A total of eight million users living in the peninsula and Federal Territory of Labuan enjoyed water services exemption over the sales and service tax (SST) hike, which came into force today.

Of the total, the Energy Transition and Water Transformation Ministry said 87 per cent involve domestic consumption and 13 per cent non-domestic consumption.

"The government will remain committed to ensure the basic needs of the people are prioritised," the ministry said in a statement today.

It added that 4.7 million sewerage services users throughout peninsula and Labuan are also not affected by the increase in tax.

The ministry previously announced that almost 85 per cent of domestic consumers living in the peninsula will not be affected by the service tax hike from 6 to 8 per cent implemented today.

The ministry also said the government's decision on taxation reforms did not apply to a vast majority of consumers, who would not feel the pinch when paying for utilities.

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