As announced during the tabling of Budget 2024 last October, the government has increased the rate of the service tax (SST) from 6% to 8%, effective from today, March 1, 2024. There are a few categories that are excluded from the new rate, including F&B, telecommunications, water and vehicle parking, but in general, consumers are set to pay more as a result of the hike.
Vehicle maintenance – service and repairs to pay new 8% SST rate
In the automotive domain, vehicle servicing and repairs are not placed in exempted categories under the revision, and so vehicle maintenance is now set to cost more as a result of the increase. While the service tax in this case is applied only on labour charges and not on parts and items, motorists will still see an increase in their overall vehicle servicing costs from today, marginal though it may be.
Motor vehicle insurance – service tax increased to 8%
Another unavoidable increase for motorists comes in the form of motor insurance, as all business-to-consumer general insurance or takaful, excluding medical insurance or medical takaful, is subject to the new 8% service tax rate.
Earlier, it was intimated from insurance providers that the tax would also be applied partially on existing policies, where for example, a policy with a coverage period from July 2023 to June 2024 would see the duration of coverage from March 1 to the end of the coverage period in June being subject to the service tax increase.
Based on the latest information, this is not going to be the case, with motor vehicle policies – which are paid in full – up to February 29 paying the old rate of 6%, with no further revision applied on these. Of course, starting from today, all motor vehicle insurance policies will be subject to the new 8% rate, charged on the actual premium paid, which means it is calculated on the sum after NCD – if any – is applied.
Car rentals to pay new SST rate – EV charging at home to cost more
Elsewhere, car rental and driver services are also subjected to the increase to the 8% service tax rate, while the new SST rate will also affect electricity bills for a segment of consumers, being applied on energy usage exceeding 600 kWh, meaning that those who already pay more than RM232 per month can expect to pay more for that utility bill.
For electric vehicle owners, this will have a knock-on effect on the price of charging their EV at home, given that doing so is likely to increase the energy consumption above the 600 kWh threshold. As it is with vehicle servicing and motor insurance (the latter, in most cases), the increase is marginal, but it is still an increase in expenditure, especially when viewed collectively.
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.
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I’m pretty sure with all these taxes imposed and malaysians suffering from high cost and the bearish of the MYR, PMX will be a 1-term PM.
this is just the appetizer. wait for the main course
Smart EV consumer surely has off-grid solar array electric generator and ample storage of LFP battery system.
Don’t worry, dumb voters still vote for him
We should have 2 tier tax regime;
New 8% taxation be levied to all PH voters & supporters because they voted for it.
Remain 6% taxation to PN & BN voters because we did not vote for PH to be gomen and screw us.
automotive topics were discussed here.
You can blame PH and their cytros for ruining this blogsite.
BN fellas got cheated to vote for PN pas, LOL!
PMX…the euphoria of the Madani govt is over.
Apart from Jana Wibawa,Littoral combat shit,bastard Joe Low,which is not Anwar’s doing,rakyat is not seeing any improvements in our currency,education,job creation,and lately all these irritating utilities sst spike.
When USD hits RM5..all hell is breaking loose..except for Petronas n those exporters,every damn imported foodstuff,and gadget will eat into our monthly income.
Even if PMX gets 1 term,the 3 more years is gonna be less food on the table.
PMX,stop all the talk about catching corrupted dudes.Leave it to the Azam Baki dude.Focus on more pressing issues,if u want another term.
We cannot wait 3 years, f*ck PH we need to kick them out now!
I concur that. This “non-targeted” hike on necessity impact to everyone. What kinda Madani is this? Isn’t targeting T20 or above
Semoga diperludahkan urusan
Tahniah pengundi PHancing
Tak pe.. Kita semua kena sama2 menanggung beban hutang negara RM1.5 trillion peninggalan PM8 & 9..
Talking cock. PM8 or PM9 also from PH
Refer my name
Refer to Restoran Jai Hind
Anwar menang rakyat senang
Apa la sangat bil api naik 2%? Tahun depan ron95 naik 50% baru korang tau
Apadehal. Kita daftar PADU masih dapat subsidi tongkat & dedak. Memang patut PMX buat keje robin hood. Padan muka korang T20 siapa suruh kaya
Anwar menang SST naik
Madani govt’s plan to increase national revenue = tax the hell out of the rakyat and squeeze us dry.
No plans for high economic multiplier industries. No plans for knowledge economy. No incentives and plans to make Malaysia attractive to foreign companies. No plans for Malaysia to be a financial services hub.
All of the above plans were being executed by Najib but he was overthrown by DAP and Mahathir and they destroyed our country irreversibly. Malaysia’s economic destruction is too far gone. PMX and all other future PMs won’t be able to rebuild our country ever again.
“All of the above plans were being executed by Najib”….*&l.a.n.j.i.a.o.u&* lu la..
10 years pm he kept stealing and benefitting his cronies!!!
you must be one of those who was benefitting directly from him….
its greedy &*a.s.s.h.o.l.e.s&* like you and thats why the country in in deep shit now!!!
This is what happens when politics gets discussed by automotive fans
true automotive fans waste their time at workshops, busy finding spare parts, polish & detailing their car, DIY stuffs in their garage, online browsing for oil caps on shoppee or maybe browsing for a classic car on mudah. only low class netizens comment about politics all the time in the wrong comment section.
Funny how PH cytros keep the spiel that Najib stole money but where did the money came from huh?
RM was far much stronger at RM 2.50 per USD now its almost double, our national debts was under RM 1 Trillion now is 50% more thanks to PMX & mentri formula, back then Petronas profits were used to setup offshore projects in Canada, Vietnam, Uzbekistan, & many other profitable businesses such that PM6 did not have to raid its piggybank now under PMX all Petronas profits are use to prop up this failing Gomen, people were truly happy under PM6 when inflation was under control when chap fan can get for RM 6 now under PMX that same basic meal cost RM 10-12.
Stop blaming Najib, he was out of politics >5 years ago and this shits happen after he left, the blame should be on all PH & their supporters & voters for screwing the country upside down, from being a 60 years darling of investors to a pariah joke country run by clowns.
The RM2.50 to USD1 exchange rate had only existed before the 1997 Asian economic crisis. After that crisis, the MYR did not recover back to that rate, even after PM6 took over in 2009.
Last year, the auditor general reported that the national debt was RM1.399 trillion by the end of 2022, which increased from RM1.305 billion at the end of 2021 & RM818.2 billion at the end of 2020. Since PM10 only took office at the end 2022, he should have either PM8 or PM9 to thank when the national debt exceeded the RM1 trillion mark.
PM8 or PM9 is also from PH so what cock talking. This is all because PH keep telling rakyat must UBAH now we ubah’ed but it became worse!!!!
yang bising-bising dan hatred feeling ni korang service kereta dan bayar insurans kereta hari-hari ke? dulu gst semua barang kena. terseksa weh hari-hari kena gst.
Bestnyer jilat,,,koyak ke tu. Biar la org kecam pm sst gst kau tu, jgn la koyak huhuhaha
oh ya.. mcm tu, bang.. don’t stop.. keep going.. oh..
Jum nyanyi lagu SST dengan papa, lge & teo ni ci
Clueless about what is currently happening to own country.
Majority had voted the wrong-in govt for decades with scores of failures policies.
ITS payback times
A responsible Govt will do what it is needs to do. To SAVE the COUNTRY.
We hired peoples because they are capable for the job not because you are a certain species.
Democratic system ma. 95% chance of able to vote in a capable leader. Those who have cable and those that that talk the most BS will win. Ini system hadiah dari British ma for a purpose.
Water park
it’s either the country start paying now for politicians stolen money or face a bigger hole in the future..there’s no escape .
Good. U ppl prefer more sst than 6% gst. Any remedies for stupidity?