Temperature soaring

The water from my taps is warm. It has been so for the past week, and I don't see it ending soon. Penang, like the rest of the country, is experiencing a heat wave. Searing temperatures in the mid-30 degrees with no rain in sight. Almost impossible to stay outside the house if there's no shade. Air-conditioning units working overtime to circulate cool air in the rooms. Electricity bill for February was already high enough due to the extra usage before Chinese New Year. I expect my electricity bill for March to be high too as the air-con is turned on, even for short durations. Only saving grace: no need to use the water heater while showering. The water's warm enough. And to add to this heatwave came unwelcome news from the government that domestic users will face a eight percent service tax if their electricity usage goes beyond 600kwh. I'm biting my fingernails and hoping I won't cross this threshold come this next meter reading.

UPDATE: I saw these stories today pertaining to the increase of service tax that comes into effect on the first of March. This is the first one:

KUALA LUMPUR, Feb 28 — Over 80 per cent of domestic users whose monthly electricity consumption is 600 kilowatts per hour (kWh) and below will continue to enjoy zero service tax on their power bills, says Treasury Secretary-General Datuk Johan Mahmood Merican.

He said only domestic households who consume more than 600 kWh of electricity a month will be affected by the eight per cent service tax hike that came into force on March 1, 2024.

“We did not change the goalposts for those who are subject to the service tax; we just wanted to clarify that currently, the (six per cent) service tax has been imposed on this segment (over 600 kWh a month consumption), which is rather a small segment, ” he told an editors briefing here today.

Johan Mahmood said commercial and industrial electricity consumers will also not be charged for the service tax, as they are not subject to the tax all this while.

Similarly, the service tax will not be imposed on the water bill, he added.

The government is slated to raise the service tax to eight per cent from March 1, 2024, from six per cent currently.

And this is the second one from Business Times.

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.

However, the increase will not include services such as food and beverage (F&B), telecommunications, parking space and logistic services that include delivery of goods.

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.

Service tax is not charged on treated water.