6 pct or 8 pct SST for non-alcoholic beverages? Restaurant operators adjust alcoholic beverage SST to 8 pct while awaiting clarification

Foo (fourth right) showing the discrepancy in the latest SST guideline in the presence of representative from the Sarawak Restaurants Association at SUPP Headquarters on Aug 2, 2024.
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By Karen Bong

KUCHING, Aug 2: Restaurant operators have adjusted the sales and services tax (SST) on alcoholic beverages to 8 per cent while awaiting clarification from the Malaysia Customs Department regarding whether the SST on non-alcoholic beverages should be 6 per cent or 8 per cent, as specified in the latest Food and Beverage Guideline.

Sarawak Restaurants Association has raised concerns about the confusion in SST rates as listed in the guideline published on April 16, 2024 with Sarawak United Peoples’ Party (SUPP) Public Complaints Bureau (PCB) chief Milton Foo planning to coordinate a dialogue with the Customs Department to address the issue.

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Deputy Premier and Minister of Public Health, Housing and Local Government Datuk Amar Dr Sim Kui Hian has also been informed of the situation.

“Under the latest guideline, it indicated that the tax rate for services providing food and drinks available or served is 6 per cent. But another two items on the list indicated that preparation or sale of alcoholic and non-alcoholic beverages are 8 per cent.

“The discrepancy is causing confusion. The tax rate for food is straightforward at 6 per cent for diners in restaurants, bistros or any eateries. But the rate for beverages are unclear – whether they should be 6 per cent or 8 per cent,” he told a press conference at the SUPP Headquarters today.

A screenshot of the tax rate for food and beverage sector in the latest guideline published on April 16, 2024.

Currently, Foo pointed out member restaurants under the Association are imposing 6 per cent SST across the board for food and beverages, except alcoholic beverages.

The Association raised this to inform the public of these changes but they also want to seek clarification, fearing that the Customs may go after them and penalise them for the 2 per cent shortfall.

“Previously, the SST rate for all food and beverages, including alcohol, was 6 per cent. But with the latest guideline, it stated 8 per cent and following adjustment by restaurant operators, this will appear in the receipt in a different category, specifically alcoholic beverage,” he explained so that the general consumers will not be alarmed by these differences.

“It is also unfair to the consumers. We do not want to see two standards with some restaurants charging 6 per cent while others charge 8 per cent,” he added.

Moving forward, Foo will arrange a meeting for the Association with Dr Sim and a subsequent dialogue with the Customs, if possible, to resolve the confusion amd provide clarity for industry players who are uncertain which rules to follow. — DayakDaily

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