Don’t use expanded SST as pretext to raise room rates, hoteliers told

Don’t use expanded SST as pretext to raise room rates, hoteliers told

The finance ministry says the revisions effective July 1 do not include changes to the service tax applied to accommodation or F&B at hotels.

Malaysian Association of Hotels vice-president Khoo Boo Lim was reported as saying hoteliers have no choice but to pass the added costs of the SST on to consumers. (Envato Elements pic)
PETALING JAYA:
The expansion of the sales and service tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations, says the finance ministry.

The ministry clarified that the SST revisions effective July 1 do not include changes to the service tax applied to accommodation or food and beverages at hotels, Bernama reported.

“The SST revisions do not affect basic daily goods, but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties, and also sales tax on selected food items such as premium seafood and imported fruits.

“However, these indirect impacts are unlikely to translate to increases of 10% to 15% in costs faced by hotels,” the ministry said.

Malaysian Association of Hotels (MAH) vice-president Khoo Boo Lim was reported as saying hoteliers have no choice but to pass the added costs of the SST on to consumers.

Negeri Sembilan MAH chapter chairman Haziz Hassan said the rate hikes could be between 10% and 15%.

The ministry warned that if hotels raise rates under the pretext of the expanded SST, the tourism, art and culture ministry will examine the matter to prevent unreasonable price increases.

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