Good time to relook service tax at eateries

There has been much talk about higher taxes and also the possibility of a goods and services tax (GST) hike.

It is, perhaps, a good time for the Government to also relook the standard 10 per cent service charge that all restaurants impose on their customers, even if "service" is clearly non-existent in some of these eateries.

I believe a 5 per cent charge is more reasonable.

Customers can choose to give more if they feel that the service they have received has been above average, or they can hand a tip to a particular server who served them well.

Under the current practice, the 10 per cent service charge collected goes to the company.

There is no incentive for the waitstaff to extend good service, since they are paid a standard wage, regardless of how they perform.

Neo Seok Kian (Ms)

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