The government has abolished the 5% government tax for restaurants with an annual turnover of RM3 million.
However, the enforcement division of the domestic trade and consumer affairs ministry is ineffective in checking whether the new policy is being implemented on the ground.
In the Klang Valley, restaurants are still collecting their 5% sales tax. For a restaurant that is churning out an annual turnover of over RM1 million, this is quite a substantial amount. To be precise, an additional RM50,000 into its coffer.
I had an experience at a bistro in Sunway Mentari where my wife and I were about to order our food. When I noticed that it was printed on the menu that there is a 5% government tax, I asked for an explanation.
To my horror, the manager told me that they are not aware of the latest announcement.
After probing further, he then admitted that he had seen the announcement in the newspapers but claimed that he had not received any circular from the government.
There are several other restaurants which are still charging the 5% government tax and these matters have been reported to Domestic Trade and Consumer Affairs Minister Shahrir Samad.
I hope the honourable minister would immediately send enforcement units to check on restaurants and provide a hotline to enable the public to lodge their complaints directly.
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