Notice of Change of Law in relation to the Imposition of Service Tax

Dear Customers,

Kindly be informed that we have recently been notified by our Supplier and the Distributor that the Government of Malaysia has introduced a 6% Service Tax on logistic services which includes the transportation of Gas via pipeline. In this regard, PETRONAS Gas Berhad, being the Transporter has imposed the Service Tax on the Transportation Tariff effective from 1 April 2024 (“Effective Date”).

Given the above, our Supplier has informed us that all costs arising from the Service Tax chargeable by the Transporter shall be passed on to us and recovered from the Effective Date. As we understand the impact that it may cause to our customers, we had engaged and made an appeal to the Supplier for such cost to be applied prospectively but to no avail.   

Similarly, we have also been informed by Gas Malaysia Distribution Sdn Bhd, being the Distributor that the Service Tax may also be applied on the Distribution Tariff. However, as of todate, we have yet to receive the implementation plan for the Service Tax on the Distribution Tariff from the Distributor.

In accordance with the Change of Law/Circumstances clause of the GSA and to ensure these costs are accurately captured, the definitions of the Transmission Tariff and Distribution Tariff are being updated to include any applicable taxes. The revised definitions are as follows:

T	:	Transportation Tariff declared by Transporter from time to time and includes tax related charges imposed by Transporter pursuant to any relevant laws or regulations in Malaysia, RM/GJ
Distribution Tariff, RM/GJ	:	Tariff declared by Distributor from time to time and includes tax related charges imposed by Distributor pursuant to any relevant laws or regulations in Malaysia

 

The breakdown of the Transportation Tariff in your monthly Gas Invoice commencing from December 2025 will include the embedded cost for Service Tax for transparency. .However, the cost for Service Tax for Distribution Tariff shall only be applied once we have received confirmation from the Distributor.

As for the costs arising from the Service Tax for a period commencing from the Effective Date until November 2025, please note that it will be recovered via separate charging mechanism and the same will notified in due course. 

Thank you.