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GST Implementation: The People Will Face an Increase in Electricity Tariffs in 2016

KUALA LUMPUR, 11 Nov: Malaysians are still faced with an increase in electricity tariffs as soon as the goods and services tax (GST) is implemented by the Federal Government, effective 1 April 2015.

Member of Parliament for Kulai, Teo Nie Ching, said that although the Federal Government informed that the GST will not be imposed on the first 200 kWh, equivalent to RM43.60 per month, consumers cannot avoid from paying tax if electricity consumption surpasses the amount.


She said that the implementation of the GST will also affect some other sectors such as health (clinics and hospitals), business and commercial industries, and schools.

“The increase in electricity tariffs will also be felt by other sectors such as hospitals and clinics. How can they accommodate the increase in electricity tariffs, including the tax payment of six percent imposed by the Federal Government.

“The government should review this policy because it affects many parties. If what is said is true, it proves that Barisan Nasional (BN) is no more than the slogan “Prices Up”,” she said in a press conference here at the Parliament lobby today.

She said that the increase in electricity tariffs is expected to be a reality when the Federal Government reduces subsidies for natural gas following the volatility of the world market price.

After the 13th General Election (GE-13), the BN government started pressing the people with the price increase of the RON95 petrol and sugar, by RM0.34 cents, with effect as of 26 October.

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