Consumerist: GST & Market Woes! All Because Of Soddy Planning & Implementation?

Dato Jacob George

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‘As far as I am concerned – even when there are no formal collective agreements, service charges collected must be distributed among the workers.

To me I insist that the GST should not impede the extra income earned by low-income workers’

Consumerist: GST & Market Woes! All Because Of Soddy Planning & Implementation?

So as I had predicted months ago, the April 1st implementation of the goods and services tax (GST) seems to have hit a snag in the service sector.

And we are now inexplicably told that service providers are now required to display their collective agreement in order to be able to exact service charges.

I nearly fell off my chair in laughter!

So much for policy deliberations and addressing issues before implantation and the numerous so called KPIs before that?

The historic fact that has been from time immemorial is that the said service charge has been there for umpteen years but the Customs Department did not bother about it.

And why?

But when it hinders the implementation of the GST, the service charge becomes an issue.

Now, restaurants and hotels have to display their collective agreement publicly to qualify for charging 10 percent service charges.

Which means just one pertinent thing!

We already know that workers in the hotel and restaurant sector are not union members.

Never have been?

This sector is dominated by foreign workers, so Malaysian workers in this industry have very little say.

Therefore, as a responsible body, the Customs Department must ensure that all service charges collected on behalf of the workers go to the workers.

And not that greedy hands that pops up so often!

As far as I am concerned – even when there are no formal collective agreements, service charges collected must be distributed among the workers.

To me I insist that the GST should not impede the extra income earned by low-income workers.

This target group is already hard-hit by the rising cost of living.

Here the minimum wages remain at RM900.

Unless it is our intention that these groups further slide into the poverty bracket of hard core poor or worst further their belts and risk at all – further defaulting on their installment and credit payments!