Tax-Free Status Sees Sarawak Hotels Offering Lower Room Rates
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With the gap between the end of goods and services tax (GST) and the implementation of sales and services tax (SST), more people are expected to check in at hotels â€“ giving the hotel industry a boost.
GST effectively ended on 1 June, while SST will be implemented in September.
The temporary tax-free status will see star-rated hotels in Sarawak offering cheaper room rates, said John Teo, honorary secretary-general of Malaysian Association of Hotels (MAH) Sarawak Chapter.
He expects guests to save between six and 16 percent with the zero-rating of GST, reported Bernama.
Aside from changing the room rates, hoteliers will also have to readjust their menu pricing, cashier machines and accounting system, said Teo.
"The Customs Department said only the nett price should be on receipts (inclusive of whatever tax added)" he said, adding that the change "took at least six hours to complete for a hotel with at least 200 roomsâ€.
He noted that hoteliers in Sarawak are ready for the transition to SST on 1 September.
He revealed that adding GST into the accounting system and point of sales cashier machines had cost around RM12,000.
"We will need to call our IT people to change again for SST.â€