Technically, we’re not required to pay the Service Charge. We’re only compulsory to pay the Goods and Services Tax (GST), as it’s clearly written in the Laws. So the idea that most people have in their minds are, refusing to pay due to the bad services by the servants. Pretty simple isn’t it? This is because, in other countries, the patrons only pay and give tips if they think that the services are good, thus in Malaysia it’s not compulsory to pay for the services by the waiter or waitress.
But before I get into the topic deeper, I will explain a bit on the GST and Service Charge, in case there still are some of the people who are confuse about this.
Goods And Services Tax
Basically, the GST which is 6% is collected by the restaurants on the behalf of the Government under the
GOODS AND SERVICES TAX ACT 2014 . Therefore, those money will be given back to the Government eventually.
Who can collect the 6% of the GST?
Every businesses who makes taxable supplies of goods and services in the course or furtherance of business that are in Malaysia and having a turnover of RM 500,000 within a period of 12 months .
If a person is a resident of Malaysia but perform services outside of Malaysia in the course of the business, that person may also be required to register for GST. Likewise, if you are a resident outside Malaysia with business here, you may be required to be registered. If you are really interested, can read further at
here.
Service Charge
This is the extra charge by the Restaurant itself (The decision was made by the restaurant committees). The percentage is up to them as there have been No Law to govern on this topic.
I have been trying to inquired the detail information on this topic through numerous Government Departments (Royal Malaysian Customs, Ministry of Domestic Trade Co-Operatives And Consumerism, Federation of Malaysian Consumers Associations and others). Unfortunately, my efforts were in vain. As none of them can directly pinpoint me to the right information and claimed that there are NO LAWS that restricted the Restaurants from collecting the Service Charge 10%
Basically, the Government can’t do SHIT on these restaurants who have decided to collect the 10% Service Charge.
So, here are some of the questions and viewpoints. Have a read and think about it.
- If we are paying for the 10% of the Service Charge for getting the services based on their definition, then should we pay for the Cooks who do the cooking? If so, why do we need to pay RM 10 for a plate of Nasi Rendang?
- If it’s Service Charge, those money will be receives by whom? If the money is to the waiter/waitress, which mean we are paying for them instead the Restaurant Owners.
- If it’s pay to the Restaurant Owners, which mean the Restaurant Owners further gain profits from us through selling Foods and Collecting the 10% Service Charge at the same time. So is it reasonable to charge twice for the patrons who patronized your Restaurant?
- Who gave these Restaurant Owners and others the right to charge customer 10% legally? Does the Government granted them the authority to impose such charges on Patrons? The answer is clearly a No.
- And look at the entire issue the other way round, how many restaurants do we have in Malaysia that are charging customer such ridiculous Service Charge? How much total revenues are all these restaurants been making per day and per year? If every patrons have to pay extra 10%, how much money is it out of the total revenues? Isn’t it TOO MUCH?
For example, Let’s say there’s a small family or 5 persons who went to have lunch or dinner that will easily spent RM 100 per week only at the restaurant that charged 10% Service Charge. One year, which have a total of 52 weeks, which mean that the customers will have to spend RM 5200 on the foods alone, which the 10% of the RM 5200(RM520) will go to the pocket of the Restaurant Owner.
What’s the origin of Service Charge in Malaysia?
Giving tips was actually a kind of practise that are only common in the Western Nations. Asian Nations in particular, do not practise such practices. So, in a 5 Stars Hotel, the servants are normally eager to help the Guests of the hotel to carry luggage and suitcases, refill water or even to clean the table and so on. Unfortunately, most Malaysians are unaware that they should put some money (tips or gratitude according to the Western Cultures) on the table. Therefore, in order to solve such problem, the hotel then decided to impose 10% Service Charge forcefully in the bill to avoid any “unpaid tips”. This is the reason why the Service Charge has successfully became our companion all these years.
A person who have been in Foods and Beverages (F&B) Industry in Malaysia for years, what’s his thought about this?
Service Charge from the F&B was considered as part of the selling good. Which mean, a customer have the right to not buys the good (not to dine there) , however a customer have no right to consume the foods and then refuse to pay which also included the Service Charge. This is a very logic way in market deal, you take it, you have to pay for it.
One question for the customers, do you have right to stop sellers from selling off his goods and at the same time the goods have appeared to be legal one?
Even if the waiter or waitress have NOT served the customers, the restaurant still has the right to charge you for the Service Charge. Why? Because, First of all, the customers did not determine to reject any Service Charge before the customers begin to take their meals. Secondly, the goods (Service Charge) is and shall be written in the menu.
If the customers are unhappy about paying the 10% Service Charge, the customers have no right to refuse to pay but instead can direct all the complains toward
National Consumer Complaints Centre.
From the point-of-view of that person who worked in F&B, here lies the real problem. The problem is that most of the menus in the restaurants have failed to state that for every foods and drinks that have been ordered will subject to any % amount of Service Charge or the Prices in display are in net. Which means, there are no common agreement between Customers and Restaurant Owners, because Customers have not been inform that they will be charge additional 10% Service Charge.
Why such things happened?
This is due to the weakness of our Government in enforcing the practice of prices display in net. Surprisingly, if you check back the Malaysia Act 762, it has been mentioned long time ago that all the prices displayed shall be in net. And Malaysians typically did not bother until the implementation of GST.
The Ministry of Domestic Trade and Consumer Affairs has enforced this since then and this is a mandatory statue law. If you see the prices displayed in the menus still in “++” format, you can actually make a complain to the Ministry.
Lastly, finally the Government of Malaysia has stepped in and called for every Restaurants and others in Malaysia to put out a notice outside the premise to inform any potential customers that they are charging 10% Service Charge. So it’s back toWilling Sellers and Willing Buyers basis. If you dislike paying the 10% Service Charge, then it’s your RIGHT to boycott any of these premises that has imposed Service Charge.
If you find this article interesting, do share it out to your friends. Thank you.
Post time 26-4-2015 07:53 PM
变色卡
Author
jadi tk boleh nk buat apa terhadapnya
