SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

The sales and service tax (SST) hike from six to eight per cent, slated for March 1, will also impact your electricity bill. According to The Star, the government has confirmed it will implement the new SST rate on energy usage exceeding 600 kWh, meaning that those who already pay more than RM232 per month can expect to fork out more money.

The finance ministry said the higher rate is expected to affect 15% of electricity users. “For electricity, the SST is only applicable for usage above 600kWh. Almost 85% of users fall below this threshold and therefore will not be affected,” the ministry said in a statement yesterday.

The 8% SST, expected to generate RM3 billion in additional revenue for the government, is said to be part of tax reforms aimed at strengthening the country’s fiscal foundation.

SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

Earlier, it was reported that the government may exempt water and electricity from the tax hike, with domestic trade and cost of living minister Datuk Armizan Mohd Ali saying a special study on the impact of an 8% SST will be presented National Action Council on Cost of Living (Naccol) for consideration. It appears the government has since decided to implement the higher rate only for selected households, with those using less than 600 kWh per month continuing to enjoy zero sales tax.

Users above that threshold were already hit by the elimination of the two-sen-per-kWh Imbalance Cost Pass-Through (ICPT) rebate at the start of the year, expected to have increased their monthly bills by between 4.2% and 6%, or between RM12 and RM32 extra.

This will have a knock-on effect on the price of charging an electric vehicle at home, which can drastically increase your energy consumption above the 600 kWh threshold. For instance, if you use 1,200 kWh a month, your bill with the 8% SST will come up to RM593.71, which is RM6.70 more than what you’d currently pay, and RM30.70 more than what you’d have paid last year with the ICPT rebate. Not a big increase, but an increase nevertheless.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • newme on Feb 29, 2024 at 11:55 am

    All the EV owners now scramble to their FB groups seeking comfort and validation.

    Like or Dislike: Thumb up 50 Thumb down 13
    • Don’t have to. Charging up the battery for a 400hp EV is still cheaper than filling up petrol for an equivalent ICE model, even if electricity price is hiked 100%. Not to mention with solar, a big chunk of it is self generated.

      Tell me, how goes your home oil pump and refinery project?

      Like or Dislike: Thumb up 16 Thumb down 91
      • newme on Feb 29, 2024 at 3:16 pm

        Yeah cheaper.. how much do you pay for a charger at home? what about installation charges? what about the need to get dedicated fire fighting equipment and fire blanket? also your medical bill for anxiety for range, anxiety if the next charger is compatible or working with your car? How much did you spent for unnecessary food and drink just to kill time because you need to wait for it to charge?

        Well-loved. Like or Dislike: Thumb up 100 Thumb down 12
        • Regime change is ignited. on Feb 29, 2024 at 5:37 pm

          Where did the data come from ,that only 15%of tnb users r affected by the hike? Why do they want to tax users just above 220 rm ?They should chop the oversized civil service,save much much more ,especially the looming pension crisis.

          Well-loved. Like or Dislike: Thumb up 98 Thumb down 4
          • keeping it quiet on Mar 01, 2024 at 10:59 am

            they know that reducing the number of the civil servants is a delicate matter & thus they avoid hasty direct action. instead they just quietly stop hiring new people to fill positions vacated by those who had resigned or retired, where & when possible.

            Like or Dislike: Thumb up 0 Thumb down 0
        • I'll entertain you on Feb 29, 2024 at 7:11 pm

          RM 2-5k more than enough for a reliable 32A socket and portable charger. ROI in 2-3 years if you charge weekly. Faster ROI if you drive more.

          Don’t need dedicated fire fighting equipment. Statistically ICE vehicles catches fire more frequently than EVs. Only uninformed people are falling for mass media hysteria. So many ICE vehicles catching fire going under the radar.

          No range anxiety at all, 300-400km more than enough for a week. My health is good, thanks for asking. How’s yours from breathing in petrol fumes and exhaust gas?

          How much? I do not eat when I am in bed or sleeping. Only plain water. So zero as it is charged overnight at home.

          Like or Dislike: Thumb up 11 Thumb down 86
          • newme on Mar 01, 2024 at 9:11 am

            Statistically, ICE vehicle do not catch fire while the engine is off and during charging. Even when it catches fire during petrol refilling, it’s often due to human mistakes and it happens at petrol station where all the fire fighting equipment are located. And when ICE vehicle catches fire, it is much easier to put off the fire than EV.

            EV gets all the fire publicity because it happens so randomly and people cannot find the root cause and not because the media wants to sensationalize the news. This is why some brands stay silents on all the fire cases affecting their cars despite claiming to possess the safest battery tech. With EV, there’s nothing much you can do except to let it burn to the ground and the only thing you can do is to prevent it to spread to other vehicles. This is why fire blankets is mandated at all charging stations.

            Like or Dislike: Thumb up 41 Thumb down 5
          • ICEV fires vs EV fires on Mar 01, 2024 at 10:48 am

            It’s not whether ICEV fires are more frequent than EV fires or vice versa. It’s that EV lithium based battery fires are much harder to put out.

            Like or Dislike: Thumb up 39 Thumb down 0
          • I'll entertain you on Mar 02, 2024 at 2:34 pm

            Clearly you are just hating on EV for the sake of hating and are not listening to reasons.

            But I will reply just so that others will not be misinformed and to stop your misinformation. You can syok sendiri and upvote yourself and downvote my facts, but it doesn’t mean it’s accurate. Clearly you have no valid ammo since I am able to refute every single one of your claim.

            You want ammo? EV currently does not make for a good rental vehicle. I will never rent an EV when I am on holiday in its current state. And if I drive outstation frequently and make multiple long distance trip in a day, EVs is also not the car to get. Then you earlier point about finding charger and compatibility are real. But for majority of regular commuters, those two are outliers and do not fit their commute pattern most of the time.

            Now on to your fire claim since it is all you have now.

            Source:
            https://insideevs.com/news/561549/study-evs-smallest-fire-risk/
            https://thedriven.io/2021/11/17/fire-beware-of-electric-car-urban-myths-including-those-by-car-writers/
            https://www.autoinsuranceez.com/gas-vs-electric-car-fires/

            Pure ICE vehicles statistically caught fire 6095% more as per the insurance study.

            That means for every 1 EV fire, there were 61 ICE that caught fire. Hybrids on the other hand, a whopping 13,842%. For ever 1 EV fire, there were 138.4. That means for ever 1 EV fire, there were 199.4 ICE & Hybrid fires.

            Now how frequently does it happen?

            25.1 EVs out of 100k sold caught fire. That’s a 0.025%. Compared to 1.53% for ICE and 3.47% for Hybrids.

            So yes, continue to upvote yourself and give yourself a medal for a job well done. /sarcasm

            Regarding EV fire being harder to put out, I agree. It is a concern, but so far from what has happened in real life, EV fires does not explode like ICE fires do. Instead it gradually increases in intensity, so you still have time to get to safety and to get help. It just takes a longer time to be put out and even then it is still a risk. You just need to weight the pros and the cons as an informed user, that’s all.

            Like or Dislike: Thumb up 4 Thumb down 11
          • bila kecil jadi kawan. bila besar jadi lawan. on Mar 03, 2024 at 12:50 pm

            just ask the jabatan bomba firemen & they’ll tell you that it is important for them to put out a fire as quickly as possible so that it would not spread & become a bigger threat to life & property. thus, if a fire from a ev lithium battery is much harder to put out, the longer it burns, the chances of it spreading & becoming a bigger threat is higher. so can the statistically low figure of evs catching fire out of the entire ev vehicle population be a counter effect against the higher threat posed by a harder-to-put-out ev battery fire?

            Like or Dislike: Thumb up 0 Thumb down 0
          • newme on Mar 04, 2024 at 9:12 am

            What misinform and ammo you are talking about? You can’t even comprehend that one cannot vote more than once.

            Like one said its not about how many cars catching fire, its the way it catches fire that is unpredictable and impossible to put out. There are discussion about high insurance premium.
            https://www.reuters.com/business/autos-transportation/scratched-ev-battery-your-insurer-may-have-junk-whole-car-2023-03-20/

            And why would common people buy a car that serves one purpose which is city driving? Get another ICE car for long distance drive? That proves EV is just a toy for the rich. They still have a reliable ICE car for actual serious travelling.

            Like or Dislike: Thumb up 0 Thumb down 1
        • Mike Tee on Mar 01, 2024 at 12:06 pm

          I look forward to the day when buying an EV makes too much sense. That day is not now for the vast majority of people, I give it to you but it will come. EVs won’t stay at 2024 levels forever.

          When that day comes I hope you are in the income bracket to be able to keep using fountain pen/mechanical watch (ICE) rather than a ballpoint/quartz (EV).

          Like or Dislike: Thumb up 0 Thumb down 2
          • Golf Resorts Dwellers Club on Mar 01, 2024 at 3:36 pm

            We only pay rm3 monthly electricity bill thanks to our solar panels on roof top plus ample storage of backup LFP batteries pack standby during nightfall or gloomy day. Charging ev at home is peanuts matter LOL

            Like or Dislike: Thumb up 13 Thumb down 6
          • A RM3K solar system with batt might get you just enough juice to power an e-bike, probably. An EV needs much-much more than that.

            Like or Dislike: Thumb up 7 Thumb down 5
  • Janji dicapati on Feb 29, 2024 at 12:12 pm

    Refer my name

    Like or Dislike: Thumb up 28 Thumb down 24
  • Nurul Izzah on Feb 29, 2024 at 12:13 pm

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 23 Thumb down 9
  • Pro-Palestine on Feb 29, 2024 at 1:36 pm

    Another OKU policy to make money FROM citizens instead of making money FOR their citizens. Time to kick them out. We need to elect people with calibre, honesty and brains to save Malaysia. Dubai, Brunei etc semua buat duit untuk rakyat. China pun sama. Tapi menteri kita buat duit DARI rakyat. pundek betul

    Like or Dislike: Thumb up 39 Thumb down 22
    • Lu guna banyak erektlik lu bayar la on Feb 29, 2024 at 2:35 pm

      Chilla

      Like or Dislike: Thumb up 7 Thumb down 3
    • Najib on Feb 29, 2024 at 2:37 pm

      Buat duit utk rakyat?..lol..just admit you are lazy..hari2 jerit palestin2..xnak keja

      Like or Dislike: Thumb up 28 Thumb down 12
      • Pro-Palestine on Feb 29, 2024 at 3:11 pm

        So Najib, you think our gov doing very well for Malaysians? Go balik lokap la bodoh and throw that key away

        Like or Dislike: Thumb up 9 Thumb down 10
        • Clean King on Feb 29, 2024 at 6:10 pm

          I agree with Pro-Palestine. Not sure why got this 2 sohai that actually support government to increase tariff. Damm stupid. Thgese 2 is government or TNB? If we make government reduce price they don;t benefit from it?? Lol. Damm kau sohai. No wonder menteri can songlap the country so easily. Got so many sohai will sokong them. Bei yan diu la sei so hai

          Like or Dislike: Thumb up 12 Thumb down 3
          • Ah Tiew on Mar 01, 2024 at 9:17 am

            Most probably cytro. Our tax payers money that pays them. Sohai lancau. I cursed this people sampai 7 generations!!

            Like or Dislike: Thumb up 4 Thumb down 0
        • Rosie M on Mar 01, 2024 at 8:05 am

          Can I advise u something? In Malaysia, there are also many other people named ‘Najib’, not only just my darling. Furthermore, he’s not allowed access to internet to post comments here..

          Like or Dislike: Thumb up 1 Thumb down 0
      • Tok yg lebih tahu on Feb 29, 2024 at 5:31 pm

        Betul cakap kamu, Jib. Sikap budak zaman skrg, nak kerja yg senang, duduk dlm ofis yg ada aircon, depan komputer melayari internet ataupun main dgn smartfon. Kerja yg susah bagi aje pekerja asing yg buat.

        Like or Dislike: Thumb up 6 Thumb down 3
  • This is happening guys, they’re giving you carrots to get you to buy EVs with the excise duty exemption and the one-off subsidies, but gradually once EV adoption has reached a critical mass, consumers will realize electricity is expensive and the roadtax is a big unknown at the moment. Considering the maintenance costs for roads can only go UP with the heft and weight of EVs, the only way is for the works department to collect higher roadtax. It’s not rocket science.

    Disclaimer: I love the idea of EVs and I think they’re the future, but we need more clarity in terms of policy planning so consumers can make the right choice for themselves.

    Well-loved. Like or Dislike: Thumb up 75 Thumb down 1
    • Vote with the wallet, best of luck

      Like or Dislike: Thumb up 4 Thumb down 1
    • Sohai on Mar 01, 2024 at 9:49 am

      yup, much like sell you a cheap printer but earn from expensive toner afterwards. So smart.

      now you know why we should choose a stupid government instead.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Ben Yap on Feb 29, 2024 at 2:38 pm

    in that way, EV sales is not going to pick up. paying more for poor charging infrastructure while u pay less and get the convenience of ICE engine.

    Like or Dislike: Thumb up 43 Thumb down 1
    • Niama on Mar 02, 2024 at 3:37 pm

      Dont worry.. soon they will remove the petrol subsidy to “level the playing field”

      Like or Dislike: Thumb up 0 Thumb down 0
  • Bieight8 on Feb 29, 2024 at 2:56 pm

    Nowadays 1 plate of nasi putih already cost rm10…

    Like or Dislike: Thumb up 26 Thumb down 2
  • You’re not saving money and the environment by buying EVs, you’re actually spending more and hurting the environment more.

    Well-loved. Like or Dislike: Thumb up 57 Thumb down 5
    • Mike Tee on Mar 01, 2024 at 12:19 pm

      Do enlighten us. Please don’t say power plant emissions and battery mining because those are myths #1 and #2. Google “Biggest EV myths” and click on the *1st* link you find.

      Like or Dislike: Thumb up 0 Thumb down 24
  • Do we want another Sheraton ? on Feb 29, 2024 at 7:44 pm

    Each day,govt keep announcing utilities price increase,this increase,that increase.
    But the overbloated underperforming civil service is never trimmed,meaning pensions will be untenable in 10 years.
    The biggest spenders is the civil service,maintainance fiascos like Spanco,Jana Wibawa ,littoral combat shit etc.
    MACC has their hands full catching civil servants,small to big cases of CBT,money laundering etc.
    PMX..u r chosen to lift the rakyat out of the financial abyss,not letting us drown further.
    Just very disappointing,not even 18 months..everything is turning sour.It is becoming a myth or fairy tale,this Madani germen can last 5 years.Hopefully PMX execute Bersih reforms.

    Like or Dislike: Thumb up 43 Thumb down 2
    • need credible numbers on Mar 01, 2024 at 10:08 am

      Can you give the statistics for your claim?
      By reading your comments, the business people also contributed to the corrupt practices in this country. Punish both parties then. We know who keeps on telling lies, and then plays victim.

      Like or Dislike: Thumb up 0 Thumb down 21
  • Chow Hai on Feb 29, 2024 at 10:12 pm

    No need EV or ICE. Just use ‘Yabadabadoo’ cars. Good for health and environment

    Like or Dislike: Thumb up 3 Thumb down 1
  • *to not *from

    SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Dunno what 7 u say on Mar 01, 2024 at 7:49 am

    Good laa. U ppl want to pay more sst instead of 6% gst. Bodoh

    Like or Dislike: Thumb up 1 Thumb down 1
  • EV cars can stay at the showroom. We want practical small good ICE cars.

    Like or Dislike: Thumb up 3 Thumb down 3
  • Does it matter ? on Mar 01, 2024 at 10:14 pm

    Still hates for EV ~ if you think the 8% is going to give you another reason to laugh at ev owners for charging at home. I can assure you most of us didn’t even care about that 8% increase once its over 600kwh or whatever. Its because without ev it is still over 600kwh since malaysia weather is super hot , we gotta keep the air conditioning running. Paying another extra rm300 a month won’t kill us or make us regret getting ev.

    And I really wanted to tell to those who think ev battery manufacturer is making the air pollution worse than ICE car. Yes it is but did you ever try to stop someone from smoking in public ? Did you stop a bus or a truck that producing darker smoke into the air ? Ahhh pathetic narrow minded people.

    I love ev and I love ICE too.

    Like or Dislike: Thumb up 1 Thumb down 3
  • 4GR-FSE on Mar 02, 2024 at 11:36 pm

    Herm better to keep my ICE where government pay the petrol subsidy for me rather than buying an EV and pay electricity tax to the government..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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