Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Apr 13): The government is undertaking a study with a view to abolishing the 5% to 10% service charge imposed by hotels and restaurants on consumers, Bernama reported Domestic Trade, Cooperatives and Comsumerism Minister Datuk Seri Hasan Malek as saying.

Bernama said Hasan also expressed hope that the service charge in the hotel and food and beverage (F&B) sectors could be completely abolished.

"I am proposing this (abolition), but there are legal implications involving the collective agreement between employers and workers," he told reporters after launching Petronas' ‘Ways2Win’ campaign in Kajang, Selangor today.

Hasan said although the service charge is aimed at financing workers' bonuses, it could be manipulated by companies to provide them supplementary
profit.

He said a committee, comprising representatives of his ministry and the Human Resources, Finance, and Tourism and Culture Ministries, as well as the Royal Malaysian Customs Department, has been formed to tackle the matter.

The government will discuss the findings of the study with hotel and F&B associations to come up with a win-win decision, he added.  

"We are a fair government. We want to hear from all quarters before making any decision," he said.

Pending the results of the study, expected to be out by month-end, hotels and restaurants have been directed to display their total service charge, he said in the Bernama report.

Hasan also reportedly said that complaints received by his ministry regarding the implementation of the Goods and Services Tax have been mainly about the service charge, non-display of prices, price hikes and counterfeit goods.
 

      Print
      Text Size
      Share