THE Ministry of Finance (MoF) has refuted claims that recent revisions to the Sales and Service Tax (SST) justify any significant increase in hotel room rates, stating that the changes do not directly affect hotel accommodation or food and beverages served on hotel premises.
Responding to reports that some hotel associations were considering raising prices by as much as 10 to 15 per cent, the ministry clarified that the SST adjustments, which took effect on 1 July, do not apply to core services offered by hotels.
“The SST revisions do not affect basic daily goods but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties and also sales tax on selected food items such as premium seafood and imported fruits,” the ministry told Bernama.
“However, these indirect impacts are unlikely to translate to a 10 per cent to 15 per cent increase in costs faced by hotels.”
The MoF emphasised that any price increases made under the pretext of tax changes would be subject to scrutiny by the Ministry of Domestic Trade and Cost of Living (KPDN).
“If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,” it said.
The statement comes amid broader government efforts to manage the rising cost of living and maintain consumer confidence in the hospitality and tourism sectors. - July 4, 2025
