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 governmentĀ tax, so consumers will still need to pay for the service charge.Ā 

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 website,Ā the 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?Ā 

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.Ā 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!Ā 

 

Also read:Ā 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

Dd Ft 40 Dd Ft 40
News5 hours ago

DBKL Refutes Viral Claims That Its Officers Received ‘Bribe’ from ‘Foreign’ Hawker to Return Seized Items

The Kuala Lumpur City Hall (DBKL) has dismissed viral claims that its enforcement officers accepted “bribes” from a “foreign” hawker...

Dd Ft 38 Dd Ft 38
News1 day ago

Klang Hospital Says Action Taken After Viral Video of Birds in Ward Eating Patients’ Food & Leaving Droppings

A video has since gone viral showing several pigeons and crows roaming around a hospital ward, believed to be in...

Collage 8 Collage 8
News1 day ago

Too Big for Orange Lock-Up Uniform, 29yo Pickup Truck Driver in Penang Rampage Wears Own Clothes to Court

A 29-year-old local man arrested yesterday (8 June) for dangerous driving of an orange Mitsubishi Triton pickup truck under the...

Collage 7 Collage 7
News1 day ago

KLIA Officers Thwart Wildlife Smuggling Attempt, Rescue 6 Live Gibbons Stuffed in Luggage

A swift and coordinated response by the airport community at Kuala Lumpur International Airport (KLIA) Terminal 1 has successfully thwarted...

Dd Ft 37 Dd Ft 37
News1 day ago

Pickup Truck Driver in Viral Penang Rampage Found with Drugs & Has 17 Criminal Records, Remanded 4 Days

A Malaysian man was apprehended by members of the public on the Butterworth-Kulim Expressway (BKE) near a petrol station in...

Feat Image Tsunamiwarning Feat Image Tsunamiwarning
News2 days ago

JUST IN: MET Malaysia Issues Tsunami Advisory for Sabah After 7.9-Magnitude Earthquake Hits the Philippines

The Malaysian Meteorological Department (MET Malaysia) has issued a tsunami advisory for Sabah following a strong earthquake that hit Mindanao...

Dd Ft 31 Dd Ft 31
News5 days ago

PDRM Finds No Criminal Elements in Viral Case of Alleged Sexual Assault of Woman in Melaka Mosque Mortuary

A social media post claiming that a woman was sexually assaulted in a mosque mortuary room has gone viral, with...

Dd Ft 30 Dd Ft 30
News5 days ago

Teo Nie Ching Urges Explanation as MCMC Blocks Public Access to M’sian Portal ‘The Coverage Media’ on Facebook

Deputy Communications Minister Teo Nie Ching has called on the Malaysian Communications and Multimedia Commission (MCMC) to explain the restriction...

Announcement

Latest Videos



TRENDING TODAY