PETALING JAYA: Your flight tickets, children’s tuition fees, ATM transactions and Astro bill used to be subjected to the 6% Goods and Services Tax (GST).
With the upcoming repeal of the GST and reintroduction of the Sales and Service Tax (SST) on Sept 1, will the Government still tax all these services?
Using the previous list of services subjected to the old SST, then you will only need to pay an SST for insurance premiums and your Astro bill, while the rest will be exempted.
The Government has not released the full list of services that will be taxed under the SST but according to tax expert Yong Poh Chye, the old SST clearly listed those which were liable to its 6% service charge.
With some purchases such as flight tickets and ATM transactions not subjected to the old SST, consumers will have extra cash in their pockets if the Government decides to continue exempting these expenses under the reintroduced SST, said Yong, who is CEO of Tax Advisory and Management Services Sdn Bhd.
“People would have more to save or spend, which would help boost the economy,” added Yong.
According to the old SST’s schedule, some popular services liable for the 6% service charge included paid television broadcasting services such as Astro.
Others included golf course and driving range services. These would include the course’s season pass, caddy services, golf buggy and equipment rentals, night golfing and coaching.
Nightwclubs, health centres and massage parlours were also subjected to the previous SST.
Among the taxable services in these businesses were the cover charge, food, drinks and tobacco, provision of dancing partners or social escorts and provision of massage services.
Companies that provided bodyguards and security guards also had to pay the SST.
The provision of credit or charge cards was also liable for the service tax.
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