TNB says if your electricity bill is more than RM231.80 a month, you will see a 8pc service tax from March 1

KUALA LUMPUR: Tenaga Nasional Bhd (TNB), in a notice on its website, has clarified that only if your electricity bill is more than RM231.80 a month, will you pay the 8 per cent service tax that comes into force on Mar 1, 2024.

The government has widened the scope of services that are taxed and increased the service tax rate to 8 per cent, as part of the government's list of tax reforms this year to boost the country's fiscal position.

Before Mar 1, 2024 the service tax rate was 6 per cent.

According to a statement by the Ministry on Feb 28, 2024, only users of more than 600 kilowatt joule (kWj) will see a 8 per cent service tax on their electricity bill.

About 85 per cent of electricity users  are below this threshold and will not be affected by the service tax.

It will however impact some 1.2 milion households.