GST: I want service charge to be abolished - Hasan Malek

The government is in the midst of finding a way to abolish the 10 per cent service charge which is still being imposed in several business premises including hotels in the country.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Hasan Malek said currently there are too many taxes being imposed on consumers which could be burdensome to them.

“I plan to look for a way to abolish the 10 per cent service charge that is still being practiced by some businesses. I will discuss the matter and the implication with non-governmental bodies, tourism industry operators and the Finance Ministry,” he told Astro AWANI when contacted.

“I see too many taxes now. I want to abolish service charge so that the traders, customers and employees to benefit from this. I am looking for a win-win situation,” he said.

Hasan said he is studying the matter from legal point of view and from the reactions of all parties involved. The government had introduced the Goods and Services Tax (GST), beginning Apr 1.

Hassan said the people have started to understand how the new tax regime works and have shown good response through the government’s briefings nationwide.

“We give them simple explanation, using simple language, avoiding difficult jargon and terms. We also daily statistic, confiscation or action taken against stubborn traders,” he said.

Meanwhile, Hassan also advised those who have issues regarding GST to take it up to the special GST line, set up by the ministry.