GEORGE TOWN: As the two per cent increase in the sales and service tax (SST) kicks in today, confusion reigned in the hotel industry.
Hoteliers are perplexed by the grey areas – what things are subject to the two percent rise and what are not.
Penang Malaysian Hotel Association (MAH) chairman Tony Goh acknowledged that there were many questions from their members on the grey areas.
Citing an example, he said, there were questions on whether corkage should be imposed with the existing six per cent SST or eight per cent if it came under wedding package.
"If they offered a seminar package, would it mean that the food and beverage and internet be at six per cent, while hall rental, PA systems, and other services at eight per cent?"
"So, yes, our members are confused with certain details.
"We will get the national MAH to assist us in getting clarity over this.
"Until then, we will apply the eight per cent SST for the grey areas for the time being," he told the New Straits Times today.
Goh said he did not foresee that there would be any negative impact on their businesses with the implementation of the two per cent increase in the SST.
"But definitely the impact will be higher prices," he added.
Goh said the Goods and Service Tax (GST) would be more favourable.
Malaysia increases the SST by two per cent to eight per cent effective today.