Tax returns. — DayakDaily.com file pic. // Photo: Pixabay

KUCHING, Dec 18: Service providers remain indecisive about their service price following the proposed increase in Sales and Services Tax (SST) rate from six to eight per cent.

The SST raise was announced by Prime Minister Datuk Seri Anwar Ibrahim when tabling the 2024 Budget in Parliament on Oct 13.

The increase, which does not apply to services such as food and beverages and telecommunication, has received a warning from industry experts as more in-depth study, including the rights tools to implement, is required.

Speaking to reporters during an event held at Imperial Hotel Kuching, its director of sales and marketing, Irene Tan, said they are waiting for the official announcement from the government regarding the matter.

“However, even if it is implemented, we have yet to decide our prices. We are still using the six per cent SST,” she told reporters when met at an event held at Imperial Hotel Kuching today.

She added that they would have to comply when it is announced.

The proposed increase in service tax will start effective March 2024 and also expand to include karaoke centre services, delivery services (except for delivery of food and beverages), brokerage and underwriting services for non-financial services (such as brokerage for ship and aircraft space, commodities and real estate), and logistics services. — DayakDaily