KUALA LUMPUR, March 1 — A total of eight million users of water supply services comprising 87 per cent domestic and 13 per cent non-domestic consumers in Peninsular Malaysia and the Federal Territory of Labuan are exempted from the sales and service tax (SST) hike which came into effect today.

The Energy Transition and Water Transformation Ministry (Petra) said 4.7 million users of sewerage services in the Peninsula and Labuan are also not affected by the increase in SST.

"The government will remain committed and caring to ensure the people’s basic needs are prioritised.

"The ministry would like to remind the public to use water prudently, especially during the current hot and dry spell in most states,” it said in a statement today.

The SST rate has been increased to eight per cent from six per cent, as announced in the Budget 2024 tabled last October.

This move is part of the government’s efforts to improve the country’s financial resilience and reduce its budget deficit. — Bernama