Restaurant owners filling in documents on the cancellation of their service tax licences at Menara Kastam in Johor.

Patrons of restaurants with annual sales of less than RM3 million are no longer subjected to the five per cent service tax.

The sales threshold was raised from RM500,000 to RM3 million from July 1, as a government measure to ease the burden of the public.

Johor Customs deputy director (Internal Tax) Ishak Ahmad said previously there were 676 restaurants in the state with sales exceeding RM500,000 each but now only 40 restaurants were taxable. He said, however, the new ruling did not cover restaurants in hotels.