CNTY2022

Shell Malaysia, Progressture Power in deal to set up solar roofs at 600 stations nationwide

Shell Malaysia Ltd and Progressture Power Sdn Bhd have partnered to install up to 20 megawatt peak (MWp) of solar capacity on the roofs of over 600 retail stations nationwide.

This initiative reinforces Shell’s commitment to powering Malaysians’ daily journeys with clean energy and achieving net-zero emissions by 2050.

In a joint statement today, Shell Malaysia outlined its plans as part of the Powering Progress strategy, which aims to reduce Scopes 1 and 2 emissions by 50 per cent by 2030, using 2016 as the baseline year.

It said the solar installation is expected to generate up to 25,550 megawatt-hour (MWh) of clean energy annually, enough to power up to 7,392 households.

Shell Malaysia and Singapore’s general manager of mobility Seow Lee Ming said this commitment drives the company to become a net-zero emissions energy business by 2050, delivering value to shareholders, customers, and society.

“By the end of 2025, our goal is for all of Shell’s retail stations across Malaysia to be powered by the sun.”

“Beyond Shell’s sustainability goals, this project empowers consumers to participate actively in Malaysia’s green energy transition,” she said.

Progressture Solar’s co-founder and chief operating officer, Ng Yew Weng, echoed this sentiment, noting that the partnership underscores the essential role clean energy must play in decarbonising the energy sector.

“By aligning our strengths and committing to Net Zero by 2050, we are solidifying the standard for decarbonisation in this industry,” he added.

This transformation supports Malaysia’s ambitious climate goals, including a 45 per cent reduction in carbon intensity against gross domestic product by 2030 compared to 2005 levels.

Through this partnership, Shell aims to accelerate its transition to clean energy while contributing to Malaysia’s national emissions reduction targets.

NET ENERGY METERING (NEM)

Net Energy Metering (NEM) scheme was introduced by the government for consumer to reduce their electricity bills. You can generate your own electricity by installing solar PV system on the rooftop for your own consumption.

  • You will consume first the energy generated by your solar PV system for your internal consumption.
  • If the energy generated is not fully used, you can supply the excess to TNB grid.
  • When solar energy is insufficient or at night when there is no access to sunlight, TNB will supply the energy to you.

By generating your own electricity, you will use less energy from TNB. Therefore, this will help to lower your electricity bill. Additionally, you can obtain NEM credit when you supply the excess energy to TNB. This credit can be used to further reduce your electricity bill.

If Your Electricity Bill Is More Than RM220 A Month, Prepare To Pay 8% SST From 1 March

If your electricity bill comes up to more than RM220 a month, you will have to start paying 8% service tax starting 1 March

According to the New Straits Times, the Finance Ministry confirmed the 8% Sales and Service Tax (SST) charge on users with electricity usage exceeding 600kWh a month.

This would mean that only users with a bill of roughly more than RM220 a month will see an 8% service tax charged on the additional consumption past 600kWh.

For example, according to the TNB Calculator  if a user has a bill of RM250, 8% SST will only be charged on the additional RM30, which is RM2.40. The total bill is estimated to be RM252.40.

Image from Berita Harian

The ministry said the new tax imposed is expected to affect only 15% of domestic electricity users

“For electricity, the SST is only applicable for usage above 600kWh.

“Almost 85% of users fall below this threshold and therefore will not be affected,” the ministry said in a statement on Wednesday, 28 February, reported The Star.

It added that water bills will be exempted from the SST hike.

Effective 1 March, SST in Malaysia will be revised from 6% to 8%

Prime Minister Datuk Seri Anwar Ibrahim announced the tax reform as a way of boosting the country’s fiscal position during the tabling of Budget 2024 last year.

LHDN To Launch e-Invoicing In 2024

The Inland Revenue Board of Malaysia (LHDN), has just announced that an electronic invoicing (e-invoicing) system will be implemented within the first half of 2024 as part of the government’s digitalisation agenda.

LHDN’s Chief Executive Officer Datuk Dr Mohd Nizom Sairi had said that would help to streamline and enhance the country’s tax system, promote transparency and give a more accurate compliance risk assessment.

Additionally, this system is to address the revenue leakage issue. These leakages usually result from issues such as the shadow economy, which are economic activities that are hidden or unseen by official authorities.

Overview of e-Invoice

Following is an overview of the e-Invoice workflow. It provides a step-by-step walk through from the point of sale up to the point of storing cleared e-Invoices on LHDN’s database.

LHDN e-Invoicing steps

In order to accommodate tax certainty, Dr Sairi also said that LHDN has put in place the Tax Corporate Governance Programme (TCG).

“This initiative serves as a platform for both tax administration and taxpayers to collaborate in an open and honest manner to enhance the organisation’s corporate tax compliance affairs,” he said.

Implementation timeline

According the LHDN, the implemention will start rolling out in 2nd half of 2024 in phases.  The implementation date will start with businesses with revenue over RM100 million and downwards to all taxpayers by 2027.

lhdn e-Invoicing timeline

He also made mention of the ongoing Special Voluntary Disclosure Programme 2.0 (SVDP 2.0).  The focus will be more on getting new taxpayers to participate in reporting their income to IRB than it does on increasing tax collection.

“It is hoped that this programme will ultimately help taxpayers fulfil their tax obligations to the nation and support sustainability for generations to come,” he added.