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KUALA LUMPUR, Aug 8 — Jeli MP Datuk Seri Mustapa Mohamed today asked Finance Minister Lim Guan Eng if the government is planning to educate Malaysians on the difference between the Sales and Services Tax’s (SST) service charge and service tax.
During his speech in the Dewan Rakyat, the former International Trade and Industry Minister said the difference between the charge and tax could cause much confusion among the public.
“We have the service charge which is implemented by restaurants or other establishments. And we know there is an agreement between employers and their workers, wherein the employer promises to collect the service charge on behalf of its employees,” Mustapa said.
Although he said he understands the service charge, or tips as he called them, is meant to supplement employees’ basic salaries, Mustapa added it is likely to be confusing when compared to the service tax.
“Will the government provide explanation to the public, via educational programmes and such, to explain to the public as to what is the difference between the service charge and service tax?
“This is because it could end up burdening the government, as the service charge may stand at 10 to 15 per cent, whereas the service tax may just be 6 per cent,” he said.
The Sales Bill was approved by the Dewan Rakyat yesterday, while the Services Bill is currently undergoing a second reading.
