Malaysia reviews electricity tariff and tax adjustments for 2025-2027

LocalBusiness & Finance
30 Jun 2025 • 11:23 AM MYT
The Sun Daily
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KUALA LUMPUR: The Malaysian government has clarified its stance on recent tax and electricity tariff adjustments, emphasising efforts to minimise public burden while ensuring sustainable economic policies.

Deputy Prime Minister Ahmad Zahid Hamidi stated, “If possible, we don’t want to burden the people with taxes. But if there are one or two cases where people are affected, we can make improvements.

“However, to outright oppose the electricity (tariff) adjustment — I think that’s not right.”

The government announced a targeted review of the Sales Tax rate and an expansion of the Service Tax scope on June 9, effective from July 1 this year.

Additionally, the Energy Commission confirmed on June 13 that over 23.6 million domestic users in Peninsular Malaysia will benefit from a revised electricity tariff structure.

The new rates, approved by the government, will be implemented from July 1, 2025, to December 31, 2027.

The adjustments aim to create a fairer and more progressive system, ensuring long-term energy affordability while supporting infrastructure development.

Authorities have assured that measures will be taken to address any unintended financial strain on households.

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