Naccol to deliberate SST exemption for water, electricity bills: Armizan

This follows concerns raised by lawmakers about impact of SST increase on basic needs

Cost of Living Minister Datuk Armizan Mohd Ali, in the Dewan Rakyat today, assures that SST exemptions for water and electricity bills will be thoroughly researched and presented at the upcoming Naccol meeting on March 20 for further consideration. – Information Dept pic, February 27, 2024

KUALA LUMPUR – The National Action Council on Cost of Living (Naccol) will discuss the proposal to exempt water and electricity bills from the sales and service tax (SST) increase on March 20, the Dewan Rakyat was told today.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali (Papar-GRS) stated that the matter was raised during the council’s meeting two weeks ago.

He was responding to Datuk Seri Wee Ka Siong (Ayer Hitam-BN), who, in a supplementary question, urged the government to reconsider imposing a 2% tax increase on the water and electricity bills, which are also basic necessities. 

“There was a paper (during the meeting) specifically for us to view the effects and impact (of the SST increase).

“God willing, what Wee has raised will be researched and brought to the attention of the next Naccol meeting on March 20 for further consideration,” he said during Ministers’ Question Time today.

The upcoming SST increase from 6% to 8%, effective March 1, will apply to all services, barring those in the food and beverage, telecommunications, and parking sectors.

Separately, Armizan also clarified that the prime minister is the chairman of Naccol, and Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal (Bukit Gantang-PN) is the council’s food cluster head.

He was responding to Rushdan Rusmi (Padang Besar-PN), who claimed that the recent Madani white rice announcement had caused confusion due to differing statements by various parties. – February 27, 2024