The attempt to shift the blame on workers' service charge for the price increases brought about by the GST comes to an end as the government does the right thing and allows the 10% service charge (which is not a government tax, but an entitlement to workers by reason of agreements between employer and workers - it is really in lieu of 'tipping' - money paid by customers which get shared amongst all workers)
Ignorance of what it really is has led to sum calling for the abolition of service charge - and this included a Deputy Minister, MPs from PKR and even DAP. Really MPs need to study the subject matter of their comments or actions before...rather than after.
Stop interfering with workers' service charge - it is NOT the old service tax or sales tax now replaced by GST?
PKR MPs, Sim Tze Tzin and Manivannan, being anti-worker? Use worker entitlement for cleanliness courses?
Putrajaya says 10% service charge to stay
Domestic Trade, Cooperative and Consumerism Ministry secretary-general Datuk Seri Alias Ahmad said after meeting with the stakeholders over the matter, the government decided to retain the practice, which was different from GST.
However, he said hoteliers and restaurant owners are advised to display a notice informing consumer on the service charge imposed at their outlets. Alias said although the government acknowledged the complaints from consumers, the decision had to be made because many of the workers are still earning salary as low as RM350.
"Based on the reasons above, however, the government maintains that businesses can continue to collect service charge," he told reporters in Putrajaya today.
The service charge, he added, may only be imposed if there was a collective agreement (CA) between the employer and the workers.
The uproar led the ministry to call for a meeting with hotel associations and restaurant owners to discuss the matter. – April 22, 2015.