KUALA LUMPUR: All gambling activities including number forecasting, lotteries and horse racing would be among items to be taxed under the Services Tax that will take effect on Sept 1, the Dewan Rakyat was told today.
Finance Minister Lim Guan Eng, in tabling the bill in Parliament, said other services that would be listed under the new law were airline and charter flight services including domestic helicopter services, except those in Sabah and Sarawak, apart from Information Technology (IT) services and domestic electric supply involving a monthly usage of over 600 units.
He said a six per cent service tax would be imposed under the law.
Guan Eng said the implementation of the new services tax would retain the model and scope of the Services Act 1975 that was repealed to make way for the Goods and Services Tax (GST) which took effect in 2015.
He added that improvement measures would be implemented on the Services Act to ease tax administration, reduce business cost and minimise weakness in the single tier tax system.
“To be specific, only 43.5 per cent of the services would be taxed at six per cent, compared to 64.8 per cent of services that were taxed under GST with the same rate,” he said.
“It is aimed at improving the people’s wellbeing by reducing the cost of living,” he said.
As such, he said, the taxing of several services would also undergo improvements and standardisation.
He said they include accommodation at hotels that would also be extended to breakfast and bed (B&B), communal facilities, service apartments and homestays.
“It will also cover restaurant services, which include catering, takeaway, food trucks, and F&B services at retails shops.
“Insurance and takaful services for business-to-business (B2B) would be expanded to general insurance coverage offered to individuals (business to consumer or B2C), but would not include medical coverage.
“The tax would also be imposed on rental vehicle services including those registered under Tourism Vehicles Licensing Act 1999,” he said.
Also listed are services offered at private clubs, golf clubs (including driving ranges), and night clubs, as well as shooting rangers.
“All telecommunication (telco) services including additional services like apps and online games, Internet, paid television (satellite and Internet) would also be included,” he added.