Mr Rehman said as the land of every industry was leased out, the collection of service charges
was illegal and it was meant to discourage manufacturers.
The enforcement of the service charge
law only exacerbates the situation.
Workers can fully receive their equal distribution from the full collected service charges
15 days after the publication of its IRR in a newspaper of general circulation.
THE Department of Labor and Employment (DOLE) said it is determining which positions in the hotel and restaurant industry will be covered by the recently signed Republic Act 11360 or the Service Charge
Under Labor Code Article 96, 85 percent of the service charge
is mandated to be distributed to the employees, and 15 percent can be used to offset losses, pilferage and breakage of hotel supplies and equipment, and at the discretion of management, for distribution to the supervisors and managers.
Local authorities have been sounding out developers, owners associations (OAs) and their management companies, as well as service providers, to come up with solutions in setting service charges
, especially those related to district cooling.
Under its provisions, all service charges
collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees.
After restoration of taxes by the honorable Supreme Court of Pakistan, CMOs have not increased the rates instead they have applied Withholding tax, General Sales Tax / Federal Excise Duty and service charges
on the existing tariffs.
She said: "I haven't had a holiday in 10 years, I haven't bought new clothes in 10 years, I work and all my wages go on service charges
and my mortgage.
The Umno lawmaker, who was debating the Sales Tax Bill tabled by the Finance Ministry, explained that some restaurants and hotels already impose a service charge
between 1 and 15 per cent, adding that the Pakatan Harapan government's 6 per cent ST will be on top of that.
According to the receipt, Mowasalat has waived the technology service charge
along with the booking fee.
He said the ministry noted that some operators were including service charges
without complying with the ministry's procedures, adding that approved service charges
should never be more than 10 percent.