On April 1 2015, the Goods and Services Tax law came into effect and this gave establishments the right to tack service charges onto bills. Not all inspectors seemed aware of the new regulation and slapped fines on some premises. There were also calls earlier this month to scrap the law altogether.
The government has not so far set the percentage rate that businesses can charge, but says the Domestic Trade, Cooperatives and Consumerism Ministry will issue guidelines in the near future. Businesses that have been imposing service fees have generally done so at the rate of 10 per cent.
Malaysia Association of Hotels boss Samuel Cheah said the agreement hammered out sees staff get 90 per cent of the fee levied. Hotel and restaurant operators are also required to put up signs saying they there is a service charge for goods and services at their establishments.
Malaysia endorses hotel and eatery service charge
News in Asia
Malaysia’s parliament has given the green light for hotels and restaurants to add service charges to bills. The agreement is the outcome of a meeting on Monday chaired by government representatives. Associations representing hotels and eateries plus the national Trades Union Congress attended.