Sarawak Restaurants Association seeks clarification on services tax rates of drinks

KUCHING (Aug 3): Members of the Sarawak Restaurants Association are seeking clarification on the different rates of service tax imposed on alcoholic and non-alcoholic beverages, said Sarawak United People’s Party (SUPP) Public Complaints Bureau chief Milton Foo.

In referring to the latest Food and Beverage Guidelines (as of April 16, 2024) issued by the Customs Department, he said the 6-per cent tax is indeed imposed on food and beverages.

However, as per the guideline, he added an 8-per cent service tax is also imposed on both alcoholic and non-alcoholic beverages.

“There is no issue for food, but for drinks, it is an issue.

“The guidelines’ schedule states in Point 1 that beverages are charged with a 6-per cent sales tax. In Point 5, meanwhile, it states alcoholic beverages are charged with an 8-per cent tax.

“At the same time, in Point 6, non-alcoholic beverages are also charged with an 8-per cent tax.

“This has caused confusion among restaurants and bistro operators,” he said at a press conference held at SUPP headquarters here yesterday.

Foo added this issue had also been brought to Deputy Premier Datuk Amar Prof Dr Sim Kui Hian.

As such, he said a meeting will be arranged with the Customs Department to obtain clarification on the issuance of sales tax of alcoholic and non-alcoholic beverages.

“We don’t want to have any ambiguity on this issue,” he added.

Also present at the press conference were Sarawak Restaurants Association chairman Kapitan Stanley Hu, vice-chairman Goh Wei Kiong and secretary Eugene Hu.