10% service charge is not govt tax

Collectible: A restaurant in Gurney Plaza, George Town, displaying the service charge.

The 10% service charge imposed by hotels and restaurants will stay when the Sales and Service Tax (SST) returns to replace the Goods and Services Tax (GST) on Sept 1.

The Malaysian Association of Hotels president Cheah Swee Hee said the service charge is not to be confused with SST, which has a 10% tax on sale of goods and 6% tax on provision of services (the same rate as pre-GST times).