Putrajaya's declaration that consumers need not pay the service charge at restaurants and hotels has caused popular franchises to be bombarded with queries on the social media.

The consumer response followed a directive from Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Alias Ahmad on Monday that such businesses may not collect service charge if they do not have a collective agreement with their staff.

However, several major franchises have announced that they are maintaining the 10 percent service charge, with some citing a lack of information from the government on its order, while others stressed that they already have a collective agreement, thus allowing them to collect the payment.

For example, Sushi King in a statement on Facebook yesterday said it was looking into the matter and would stick with the old policy for now.

"We would like to inform you that Sushi King will continue to impose the 10 percent service charge per usual until we have better clarify on this subject matter," it said.

The ambiguity over the directive appears to be a knee jerk reaction by the government as it comes under pressure for its implementation of the goods and services tax (GST).

Putrajaya's sudden announcement has instead put the spotlight on businesses as it insisted that the 10 percent service charge has nothing to do with the government.

'What if I don't agree to pay?'

Another franchise, Sushi Zanmai, reiterated what Sushi King said in a Facebook posting yesterday as well, stating: "Please be informed that all food and beverage prices in Sushi Zanmai are subjected to 10 percent service charge."

This was met with a torrent of rebuttal, with one Henry Wong saying: "Government said no need, (it's) all in the news" while JC Chan replied: "What if I don't agree to pay, will you waive it?"

Another user by the name of Ivan Cha said: "Do you have the collective agreement? I don't have (then) you can't collect the service charge."

However, Sushi Zanmai in a response indicated that it does have such an agreement.

The popular dining establishments have been bombarded even before the directive on Monday, after Deputy Finance Minister Ahmad Maslan claimed last Friday that consumers have the right to refuse to pay the service charge.

For example, Facebook user Lok Hon San demanded to know, on Nando's Facebook page, whether paying the service charge was optional.

However, Nando's responded that it had a collective agreement with its employees, stating: "The service charge imposed at all our Nando's outlets goes back to our staff."

It added that customers can refuse to pay the 10 percent service charge if the service was unsatisfactory but it would only be waived after an investigation is conducted.

Old Town White Coffee too was forced to defend its service charge following Ahmad's statement.

"We would like to clarify that service charge does not solely cover the staff’s service effort and pay but it also includes many aspects such as the facilities provided in each outlet. Therefore it is applicable," Old Town White Coffee said on its official Facebook page.

It added that the six percent GST is also imposed on the 10 percent service charge as the government also imposes tax on services rendered.