SST revision does not justify hotel rate hikes, MOF says
The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels.
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Free Malaysia Today
2 hours ago
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Don't use expanded SST as pretext to raise room rates, hoteliers told
Malaysian Association of Hotels vice-president Khoo Boo Lim was reported as saying hoteliers have no choice but to pass the added costs of the SST on to consumers. (Envato Elements pic) PETALING JAYA : The expansion of the sales and service tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations, says the finance ministry. The ministry clarified that the SST revisions effective July 1 do not include changes to the service tax applied to accommodation or food and beverages at hotels, Bernama reported. 'The SST revisions do not affect basic daily goods, but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties, and also sales tax on selected food items such as premium seafood and imported fruits. 'However, these indirect impacts are unlikely to translate to increases of 10% to 15% in costs faced by hotels,' the ministry said. Malaysian Association of Hotels (MAH) vice-president Khoo Boo Lim was reported as saying hoteliers have no choice but to pass the added costs of the SST on to consumers. Negeri Sembilan MAH chapter chairman Haziz Hassan said the rate hikes could be between 10% and 15%. The ministry warned that if hotels raise rates under the pretext of the expanded SST, the tourism, art and culture ministry will examine the matter to prevent unreasonable price increases.
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No notice, no consultation: Kepong MP demands answers over sudden SST hike on A4 paper from July 1
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The Star
6 hours ago
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Businesses get more time for tax submissions
PETALING JAYA: Businesses affected by the expanded scope of the Sales and Service Tax (SST) can file manual tax submissions for the taxation period between July 1 and Sept 30, says the Finance Ministry. It said this was because service providers have to upgrade their systems to comply with tax collection regulations. 'Therefore, the government will provide flexibility for manual submissions during this period. 'The service tax must still be imposed and collected during this timeframe,' it said in a statement yesterday. The ministry added that the Customs Department will also open voluntary early registration for manufacturers. 'Manufacturers who have registered are required to charge and collect the sales tax beginning July 1. 'They are also eligible to apply for exemptions on raw materials used when manufacturing taxable items,' it added. The ministry also said companies that have received sales tax exemptions through the Malaysian Investment Development Authority's (Mida) tax exemption committee before July 1 will continue enjoying tax exemption status, subject to terms and conditions. However, if a company manufacturing taxable goods after July 1 has exceeded the set threshold, it must become a registered manufacturer and apply for exemption through the MySST portal. 'The Finance Ministry hopes that these measures can assist businesses while helping companies that are affected by the expanded SST scope to comply,' it said. For further information, it said the public can contact the Customs Department at the following numbers: 03-8323 7406; 03-8323 7407; 03-8323 7409; 03-8323 7412; 03-8323 7414 03-8323 7415; 03-8323 7416; and 03-8323 7417. They can also contact the Customs hotline at 1-300-888-500.
