Last Updated: 4:25pm, Dec 04, 2013
DOMESTIC consumers using more than 200 kWh of electricity per month (RM43.60 per month) will be subjected to 6% GST once the new taxation is enforced on April 1, 2015.
Sin Chew Daily highlighted the finding on its front page today, citing MyPower Corp, a special purpose unit set up by the government to review the contents of the power purchase agreements (PPAs) and study a possible restructuring of the country's electricity supply industry.
The report said, according to MyPower, once GST is implemented, only domestic consumers using less than 200 kWh would be exempted from paying the good and services tax.
It quoted MyPower public relations officer as saying that the government's intention was to let those who consumed more power to bear the GST and not intending to add to the burden of the low income group.
Besides the GST, the government would increase the 1% charge for renewable energy fund to 1.6%, effective from Jan 1, 2014.
The daily added that the new measure would also be expanded to Sabah and Labuan, affecting domestic consumers using more than 300 kWh of electricity per month.
The report said, Tenaga Nasional Berhad (TNB)'s share price soared 27.40% yesterday and reached RM12.60, a record high, following the government's approval of the 15% electricity tariff hike.
Researchers projected that TNB's net profit would boom to RM4.9 billion next year and RM5.5 billion in 2015 and 2016 following the tariff review, the report added.
Why East Malaysians have to bear higher tariff?
Sabah United Chinese Chambers Of Commerce (SUCCC) has expressed its displeasure over higher rate of new electricity tariff for the borneo state compared to the peninsular.
China Press reported SUCCC president Datuk Seri Gan Sau Wah has urged the government to explain why the new electricity tariff was higher for East Malaysia than peninsular despite its vows on leveling the prices of goods in East and West Malaysia.
In his opinion, the adjusted rates should be the same nationwide.
He said, the tariff hike, on top of rising inflation rate, fuel hike and sugar price hike, had created a huge impact on the people as well as the business and industrial sectors.
He opined that this was not a right time to increase the tariff rate since Malaysia and Sabah economy were affected by global financial and economic downturn.
Meanwhile, Kota Kinabalu Chinese Chambers Of Commerce (KKCCC) president Datuk Michael Lui Yen Sang said, it was unacceptable to the chambers that the tariff hike rate was higher in Sabah and Labuan than the peninsular.
He said, electricity tariff in Sabah and Labuan would rise by 16.9%, higher than 15% increase in the peninsular.
He pointed out that there was a huge room of improvement in Sabah energy supply system, including constant power cuts that had been troubling the people, he said the government should not have allowed tariff hike before solving these issues.
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili announced on Monday that for Sabah and Labuan, the average electricity tariff would be increased by 5 sen/kWh or 16.9 per cent from the current tariff of 29.52 sen/kWh to 34.52 sen/kWh.