Some eateries plan to impose 16pc tax, others 6pc
Published on: Tuesday, March 31, 2015
Kota Kinabalu: Seafood lovers in the State will find the bills at their favourite seafood restaurants coming along with the new tax beginning Wednesday.Most seafood restaurants in the city currently do not impose service tax or government tax on customers but all have disclosed that come next month, all bills would be imposed with the six per cent Goods and Services Tax (GST).Welcome Seafood Restaurant staff, Irene Tan, said the restaurant had always added a six per cent government tax on every receipt.ADVERTISEMENT "At the moment the six per cent is under government tax, but come April we'll change the name to GST. There really will be no difference in the charges."We have never charged service tax though and we won't charge it after April. I mean if we did no customers will come to the restaurant!"Suang Tain Seafood Restaurant, Restoran Jeti, Hua Hing Seafood Restaurant and Sri Mutiara Seafood Restaurant all said they have never imposed service charge nor government tax before.Sri Mutiara Seafood Restaurant owner, David Chia, said it was told by the authorities that it was up to them to charge their customers service tax. ADVERTISEMENT "But how to charge? Customers will get angry and may not come and then what service will you have?"We cannot charge anymore, it is very competitive here," he said pointing to the location of the restaurant that is at Sedco Square which has several seafood restaurants to pick from.
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Elsewhere, other upmarket restaurants are planning to continue charging the 10 per cent service tax on top of the six per cent GST, meaning 16pc in all."I have to charge the service tax after April 1…I have no choice but will try to offer discounts to my customers after totalling the whole price inclusive of GST," said A'roma Ristorante owner Aaron Moses Kimbun. "I don't think the people here are ready for the GST," he said, adding that at the moment they charge their customers the 10 per cent service tax.He was echoed by Madben Café owner Benedict Lim who stressed that both taxes differed. "The service tax is to pay our workers as well as the facilities we offer like electricity … the GST on the other hand goes directly to the Government," he said.Like Aaron, Lim charged his customers only the 10 per cent service tax but would top it with the 6pc from Wednesday.Party Play Events and Catering Director Evelyn Chen also said they would do likewise. "I think it would affect our catering service the most but it wouldn't affect our dine-in customers that much."We have always been charging six per cent tax to our customers as we sell beers here," she said.Stay up-to-date by following Daily Express’s Telegram channel.
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Fook Yuen owner Yong Yun Sin also said that he had never charged his customers service tax."And we will not charge them service tax after April 1 but of course, I have to admit that it would be impossible for me to say that there will be no increase in the price of our food and beverages after April 1," he said, suggesting that any increase could be recouped through other ways.