The government wants a name change for the service charge imposed by hotels and restaurants so that people do not think that the money was going to the government.
Deputy Finance Minister Datuk Ahmad Maslan said these charges could instead be called “restaurant charge” or “hotel charge” so it’s made clear that the five to 10 percent tax was not by the government, Bernama reports.
“The service charge tax has nothing to do with the Goods and Services Tax (GST) which will be implemented at six per cent from April 1. Service charge tax refers to the tips given to restaurant and hotel workers. Nevertheless, the government does not want the public to be confused on this charge,” he was quoted as saying.
This suggestion has been sent to the Ministry of Domestic Trade, Co-operatives and Consumerism, which would then issue a guideline, he said.
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