‘Include electricity under GST-free list’

BY RAHIMY RAHIM, PRIYA KULASAGARAN, AND LOH FOON FONG

PETALING JAYA: If consumers are wondering how much of electricity they use before they are imposed with the Goods and Services Tax (GST), it is RM77, which translates to 300 units of consumption.

However, this amount would only be for the average use of basic electrical appliances such as television, fan, light, refrigerator and other household items, said Association of Water and Energy Research president S. Piarapakaran.

“If they use an air-conditioner or shower with a water heater, the amount of electricity consumed will come to more than 300 units for a family of four or more,” he said when contacted yesterday.

Under Budget 2015 announced by Prime Minister Datuk Seri Najib Tun Razak last Friday, electricity consumption of up to 300 units will be GST-free, a move expected to benefit 70% of Malaysian households.

The association has urged the Government to reconsider the imposition of GST on electricity, and include it under the zero-rated list.

Piarapakaran said they were concerned that the GST on electricity for commercial and industrial use would cause the prices of goods and services to go up, with the cost being passed on to consumers.

“Our electricity tariff is already punitive, which means the more you use, the more you pay.

“It will be unfair to include additional charges via GST to consumers’ bills,” he said.

Meanwhile, the Pharmaceutical Association of Malaysia called on the Government to include all drugs and medicines as zero-rated under the GST list.

Its president Ewe Kheng Huat said more drugs outside of the National Essential Medicine List and those sold over the counter should also be categorised as zero-rated.

“We are asking for all medicines and drugs to be zero-rated as there is a huge range of dosages just within one type of medicine,” he said when contacted yesterday.

Ewe cited an example where a simple drug such as paracetamol had different dosages to suit the age groups.

Budget 2015 also noted that GST would not be imposed on dental, nursing, midwifery, allied health, pharmacy and ambulance services provided by healthcare professionals, hospitalisation, screening, diagnoses, treatment to those suffering from any disease, injury or disability of mind or body.