Connect with us

News

10% Service Charge at Hotels & Restaurants to Stay Even When SST Returns in Sept

Published

- World Of Buzz
Source: The Star & The Malay Mail

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

 

Yesterday (17 July 2018), the government announced that the Sales and Services Tax (SST) and Service Tax will be reintroduced starting 1 September 2018 at 10 per cent and six per cent respectively.

However, The Malay Mail recently reported that the 10 per cent service charge imposed by restaurants and hotels is not going anywhere even after SST is implemented. According to the Malaysian Association of Hotels (MAH) president, it is not related to any government tax, so consumers will still need to pay for the service charge. 

He was quoted as saying,

“The SST is a government tax while the service charge is distributed among the service crew of the hotel.”

“The rest of the hotels implement clean wage system to meet the minimum wage requirement.”

Based on the Customs Department’s websitethe service charge is a fee “above the cost of goods or services imposed by business in a bill”, so the 10 per cent service charge is imposed to replace the tipping system. Besides that, industry players shared that the collection from the service charge is used to cover breakages and staff events while the remaining will be given to the staff. Several restaurants in Penang also said that the collection will benefit the workers more. Hmm, maybe it isn’t that bad? 

Back in April 2015 when GST was introduced, the Domestic Trade, Co-operatives and Consumerism Ministry said that restaurants and hotels can only charge a service charge fee after they have had an employer-employee collective agreement and a notice must be put up right after the agreement.

On the other hand, manager of Foong Wei Heong Restaurant, Ooi said that a five per cent service charge is levied to cover the cooking and serving. On a separate note, he is worried that some businessmen may increase the prices after SST comes into place and thus hopes that the government will take precaution to stop it from happening.

It looks like the service charge is here to stay as it clearly has nothing to do with the six per cent service tax. They are two different type of charges, guys! After all, it’s also beneficial for the staff, since tipping isn’t a practice in this part of the world.

What do you think of the service charge staying in place despite the reintroduction of SST come September? Let us know in the comments! 

 

Also read: SST to Be Reintroduced at 10% and Service Tax at 6% Starting September 1

Sst To Be Reintroduced At 10% And Service Tax At 6% Starting From Sept 1 - World Of Buzz 3

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Collage 27 Collage 27
News19 hours ago

Man Turns Aggressive at Selangor Eatery After Being Asked to Settle Debt, Chases PDRM Officer with Cleaver

A man went on a violent rampage after being asked to settle an unpaid food bill at a restaurant in...

My Post 1 2026 04 09T113947.125 My Post 1 2026 04 09T113947.125
News19 hours ago

“It’s to educate” – Children as Young as 10 in Malaysia Can Now Be Sentenced to Community Service for Littering

The Solid Waste and Public Cleansing Management Corporation (SWCorp) has revealed that even children can be charged for littering. Taking...

My Post 1 2026 04 09T105709.949 My Post 1 2026 04 09T105709.949
News20 hours ago

DBKL Detains 5 Local & Foreign Parking Touts Targeting Road Users in City Centre, All Fined RM1.5k Each

Kuala Lumpur City Hall (DBKL) has detained and taken action against five parking touts following an operation conducted across the...

Collage 25 Collage 25
News2 days ago

17yo M’sian Student Tragically Loses Her Life After Being Struck by Falling Beam at Selangor Temple

A shocking accident occurred yesterday (7 April) at a temple in Tanjong Sepat, Selangor. A 17-year-old female Form 5 student...

My Post 3 2026 04 08T112427.871 My Post 3 2026 04 08T112427.871
News2 days ago

“I grew up watching them” – Kedah Man Arrested Alongside Parents Who Turned Home into Drug Den

The Kuala Muda District National Anti-Drugs Agency (AADK) in Kedah has arrested a family of three after they were all...

Dd Ft 2026 04 08T103310.174 Dd Ft 2026 04 08T103310.174
News2 days ago

“The feature has been disabled” – MOF Denies Claims That M’sians Can Apply for Additional BUDI95 Quotas

Claims that Malaysians are entitled to an additional quota under the BUDI MADANI RON95 (BUDI95) subsidy have been debunked by...

My Post 1 2026 04 07T165806.605 My Post 1 2026 04 07T165806.605
News3 days ago

M’sian Widower Cries as He Gets 6 Months in Jail for Throwing Kitten Against Kajang Laundromat Wall

An unemployed widower and father of three, who previously went viral for abusing a kitten, has been sentenced to prison....

My Post 1 2026 04 07T154044.786 My Post 1 2026 04 07T154044.786
News3 days ago

29yo Drug-Positive Trailer Driver Charged with Murder of Family Trio in Fatal Johor Crash

The trailer driver who tested positive for methamphetamine following a fatal accident that killed three family members last Thursday (2...

Announcement

Latest Videos



TRENDING TODAY