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

Dd Ft 23 Dd Ft 23
News1 hour ago

23yo Man Killed in Hit-and-Run While Putting Up Flags for N9 State Election, Suspect Still on the Loose

A 23-year-old man tragically lost his life after he was believed to have been involved in a hit-and-run accident along...

Collage 21 Collage 21
News2 hours ago

LRT3 Shah Alam Line Delayed This Morning After Man Trespasses & Runs on Railway Tracks at Klang Station

As commuters took to social media wondering what had happened to the LRT3 Shah Alam Line this morning (21 July),...

Dd Ft 22 Dd Ft 22
News4 hours ago

Eyewitness Recalls Trapped Lorry Driver’s Heartbreaking Plea for Help Before Dying in Tanah Merah Crash

A lorry driver and two passengers were involved in a road accident after the five-tonne lorry carrying chicken supplies they...

Collage 20 Collage 20
News4 hours ago

Man Found on Cheras Basketball Court Died From Stab Wound, PDRM Launches Murder Investigation

What began as the discovery of a body on a stone bench at a basketball court in a residential area...

Collage 17 Collage 17
News4 days ago

Body of 10yo Missing Sabah Girl Found After 3 Days Near a House Under Construction, 2 Suspects Arrested

The search for a 10-year-old girl who had been missing since 13 July ended in tragedy after her body was...

Collage 16 Collage 16
News5 days ago

PDRM Confirms 19yo Sarawakian Teen Arrested at Hong Kong Airport with Over RM270k Worth of Drugs

A 19-year-old Malaysian has been arrested at Hong Kong International Airport after authorities discovered around three kilograms of drugs hidden...

Collage 12 Collage 12
News1 week ago

At Least 28 Dead & 60 Injured After Horrific Fire Engulfs Packed Bangkok Pub Near Chatuchak Market

A devastating fire at a popular pub in Bangkok’s Chatuchak district has left at least 28 people dead and more...

Collage 11 Collage 11
News1 week ago

Shah Alam Uni Student Caught Sniffing Shoes in Condo Corridor, Victim Says He Stalked Her for Months

What started as a series of unsettling encounters has now led to the arrest of a male public university student...

Announcement

Latest Videos



TRENDING TODAY