95,982 SESB consumers to pay more tax

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KOTA KINABALU (Feb 28): The government announcement to raise sale and service tax (SST) will also involve Sabah Electricity Sdn Bhd (SESB) consumers.

The SST rate will be increased from 6% to 8% beginning March 1, 2024.

According to SESB Chief Executive Officer Mohd Yaakob Jaafar, the 8% SST will be imposed on electricity usage that is 600 kwh above or monthly bills that are RM203 and above.

The increase is expected to affect 95,982 account holders or 16.72 percent.

Consumers can visit the official SESB website www.sesb.com.my for further information on the SST rate.

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.