Despite gripes from the public over having to pay an arbitrary 10% service charge at certain hotels and restaurants over the mandatory Goods and Services Tax (GST), the Federal Government announced today that it will not block businesses from imposing them.
Domestic Trade, Cooperative and Consumerism Ministry secretary-general Alias Ahmad said that after conferring with stakeholders over the matter, Putrajaya decided to allow the service charges to continue.
He aded that the move was aimed at protecting the welfare of workers in the affected industries.
“The meeting took note of several points presented by the groups, among them the low wages earned by workers in the industry,” Alias said, as quoted by The Star Online‘s Joseph Kaos Jr.
“There are still some hotel workers who are paid a low basic salary of RM350 a month, even after the implementation of the national minimum wage.
“If the service charge is removed, the low basic salary makes the hotel and restaurant industry unattractive. This also allows foreign workers to take up the jobs of the locals.”
He reminded all those concerned, however, that the service charge could only be imposed by businesses with standing Collective Agreements (CA). The meeting also concluded that any businesses who want to impose a service charge would need to display a sign informing consumers of the fact outside their storefronts.
Alias also said the government would conduct a study to see if there should be new laws regulating the implementation of a service charge.
“The Ministry is preparing a standard guideline for businesses imposing the service charge,” he said, adding it was being drawn up with the help of the Attorney-General’s Chambers.
“We hope to complete this soon so we can take follow-up action on businesses who do not adhere to the guidelines,” he said.
Know about something happening in KL and Malaysia? Want to share? Send us an email:kl@coconuts.co – don’t just read the news, make it!
