Government: 10% service charge stays

Here’s the final word on the service charge saga that’s been swirling around since April 1 — it stays, but only for hotels and restaurants that have collective agreements (CA) with workers unions.

Also, shops and hotels that impose the charge must display a notice within their outlets so that customers are not served rude shocks along with their bills.

“KPDNKK will be issuing a standard notice to be adopted by these premises but for the time being, such premises could put up their own notices,” Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) secretary-general Datuk Seri Alias Ahmad said, as reported by Bernama.

On Monday, officials from the ministry met with hotel and restaurant workers unions and consumer associations to discuss the matter that has been hotly debated since the implementation of the Goods and Services Tax (GST) — which is imposed on top of the service charge — this month.

Alias said the service charge is capped at 10 percent and it was up to the hotels and restaurants to decide their respective rates. 

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