SST revision does not justify hotel rate hikes
04 Jul 2025 05:32pm
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. Photo for illustrative purposes only - Canva
KUALA LUMPUR - The Finance Ministry indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations.
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.
"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 a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. 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.
The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure.
The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases.
"If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. - BERNAMA
More Like This
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
GLCs to co-create with startups under Cradle's BIG innovation initiative
PETALING JAYA: The Ministry of Finance (MOF), Ministry of Science, Technology and Innovation (MOSTI) and Cradle Fund Sdn Bhd have selected eight government-linked companies (GLCs) under the Bengkel Inovasi GLC (BIG) programme. The companies are Bank Islam Malaysia Bhd, CelcomDigi Bhd, Edotco Group Sdn Bhd, Malaysia Aviation Group Bhd, Sime Darby Property Bhd, S P Setia Bhd, Tenaga Nasional Bhd and Cenviro Sdn Bhd. In a release, Cradle stated the GLCs were selected for their innovative technology applications, particularly in digital and AI — showcasing clear potential to improve operational efficiency, support business growth and scale across their respective industries. They also demonstrated strong partnership models with local and global startups, reinforcing the collaborative spirit of BIG programme. "Over the next six months, the selected GLCs will collaborate with in-house innovation teams, startups and venture builders through either the Venture Client Track, the Venture Co-Creation Track, or a combination of both. Each will develop a proof-of-concept, culminating in a Demo Day that paves the way for real-world deployment and co-created ventures," the release noted. Startups interested in collaborating with GLCs are encouraged to submit their interest via BIG's website at
Daily Express
6 hours ago
- Daily Express
SST revision does not justify hotel rate hikes: MoF
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Bernama Text Size: For illustrative purposes only - Getty Images/iStockphoto KUALA LUMPUR: The Ministry of Finance (MoF) indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. 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. Advertisement '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 a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases. 'If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
7 hours ago
- Borneo Post
SST revision does not justify hotel rate hikes, says Finance Ministry
MoF clarifies that the SST revisions do not include any change in the service tax applied to hotel accommodation or F&B served at hotels. – Pixabay photo KUALA LUMPUR (July 4): The Ministry of Finance (MoF) indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. 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. '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 a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases. 'If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. – Bernama F&B hotels kpdn lead MoF SST
