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 30 Collage 30
News9 minutes ago

Prasarana Reveals Why the New LRT Shah Alam Line (LRT3) Doesn’t Have Women-Only Carriages

Commuters expecting women-only carriages on the newly opened LRT Shah Alam Line (LRT3) may have to wait a while longer....

Collage 29 Collage 29
News54 minutes ago

Syed Saddiq Arrives in Court With Bella Astillah & Supporters, Only for Verdict to Be Postponed as Judge is on MC

Muar Member of Parliament (MP) Syed Saddiq Syed Abdul Rahman will have to wait a bit longer to learn his...

Collage 2 1 Collage 2 1
News23 hours ago

Malaysians Can Say Goodbye to Affordable Imported EVs from 1 July as New Govt Rules Push Prices Over RM300,000

Thinking of buying an imported electric vehicle (EV) in Malaysia? You might want to act fast. Starting 1 July 2026,...

Dd Ft 65 Dd Ft 65
News4 days ago

Survey: PMX Most Popular Politician in Malaysia with 52% Approval, Zahid Hamidi Places Last with 24%

A recent survey found that Prime Minister Datuk Seri Anwar Ibrahim recorded the highest approval rating among the country’s political...

Dd Ft 61 Dd Ft 61
News6 days ago

M’sian Man Who Went Missing After Work Tragically Found Dead in Shah Alam Drain Alongside His Motorcycle

A Malaysian man in his 40s who was reported missing after leaving work on 23 June has been tragically found...

Dd Ft 60 Dd Ft 60
News6 days ago

DBKL Investigates Own Staff Caught Littering from Official Vehicle in Viral Video, Issues Compound

A video has since gone viral showing a staff member inside a moving Kuala Lumpur City Hall (DBKL) official vehicle...

Collage 22 Collage 22
News6 days ago

Anthony Loke: Vehicles With Outstanding Summonses Will Soon Be Barred From Leaving or Entering Malaysia

Vehicle owners with outstanding fines or unresolved legal cases may soon face restrictions on cross-border travel under proposed amendments to...

Collage 21 Collage 21
News1 week ago

Finally! LRT3 Shah Alam Line to Officially Open on 29 June After 10 Years of Development

The Light Rail Transit 3 (LRT3) Shah Alam Line is expected to commence full operations on 29 June, according to...

Announcement

Latest Videos



TRENDING TODAY