Malaysia exempts domestic electricity transmission and distribution from service tax for 800 kWh or less, 17 September to 31 December 2026

What changed in detail

Royal Malaysian Customs Department Service Tax Policy No. 6/2026, dated 1 October 2026, exempts from service tax the electricity transmission and distribution service supplied to domestic consumers using 800 kWh or less in a billing cycle of at least 28 days. It also relieves providers from charging the tax on those supplies.

The exemption applies for the period 17 September 2026 to 31 December 2026, so it covers a period that began before the policy was dated.

What it means

The exemption is time-limited and backdated to 17 September, so electricity distributors need to apply it to qualifying domestic bills from that date and not only from the policy date. Bills already issued for the period may need adjustment.

The test is per billing cycle: a domestic account above 800 kWh, or on a cycle shorter than 28 days, falls outside the exemption. Check how your billing system treats short cycles before relying on the exemption.