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Do away with in-house service tax post-GST

Right now, food outlets in hotels and restaurants are charging their customers/patrons a 5 percent service tax (some 10 percent) for food and drinks sold/consumed in its premises/establishments.

The question is, is this practice legal, if not how about the government issue a directive to these businesses nationwide to stop charging it on the bill. The question whether does the employer really give it all back to those deserving staff members at the end of the day is still a mystery.

Apparently, it is hearsay, that some employers are taking a cut. Exactly, this defeats the sole purpose for the additional payment.

Of course, with its removal, the customers/patrons are free to give a tipping to the particular waiter in attendance, for good service. As a result, this will get the rest of service staff members giving their best while at the job.

As it is now when it is a standard charge in the billing, the service staff members already knew that they will not get anything more for putting in the extra service, so what they do is routine.

By the way, all waiters and waitress are paid a remuneration while some are provided (with) board and lodging. So, if their take home pay is getting lesser with the removal of the ‘compulsory’ 5 percent or 10 percent in-house service tax, then it is time the employers increase their pay.

However, the win-win results when service staffs at eateries in hotels and restaurants are getting higher pay and when the customers/ patrons only have to pay for 6 percent goods and services tax (GST) - then it will still be affordable for everyone to eat out with friends or family. Certainly this is good for the food and beverage (F&B) businesses, too, in the long-term.


LAU BING is a community activist and writer in Subang Jaya.

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