:Only 22 restaurant license holder in the state can charge service tax: Yusop

LAHAD DATU: Only 22 restaurant license holders operating outside of hotel premises and earning over RM3 million are able to charge the service tax of 5 percent in the state.

Director of the Royal Malaysian Custom (RMC) Sabah, Datuk Haji Md. Yusop Haji Mansor they had also identified 314 restaurants operating in the similar method and earning below the RM3 million are not qualified to conduct such charges in the state.

`Those not qualified to conduct the service charge beginning July 1 this year’, he said in a press conference while attending the RMC Lahad Datu Faithful and Friendly event held at the RMC prevention ground today. He said that before the new ruling took place, there were 336 license holders qualified to charge the service tax in Sabah upon approval by RMC. Yusop also said public can lodge their complain should they were charged the customers service tax without the premise displaying the permit.

`Should such premise did not display their permit while at the same time charging customers with the service tax, they are liable to be charged under Section 31 of the Service Tax Act 1975’, he stated.

He also said that Sabah RMC will make a lost of around RM1.5 million from the new ruling based on predicted tax collection for the whole of 2008. Among those present during the event was Lahad Datu RMC chief Norizan Haji Yahya.