PETALING JAYA - The price of beauty services like manicure and hair and facial treatments will be subject to 6 per cent Goods and Service Tax (GST) come April 1.
However, Customs Department GST director Datuk Subromaniam Tholasy said the price difference after the tax was imposed would not be very large.
"There will be a slight increase in prices for beauty services. But it will not be a big issue because operators registered to implement the GST will be able to lower their costs by claiming the input tax credit," he said when contacted yesterday.
Subromaniam said examples of input tax credit that could be claimed by beauty centre operators were rental fees for the premises, electricity costs and equipment purchased to carry out services.
"Businesses which do not register to impose the GST will not be able to claim for such input costs," he said.
Input tax refers to the GST paid by businesses on the purchase of goods and services used to perform their businesses.
Subromaniam said there were "quite a number" of beauty centres which have registered with the Customs Department.
"Massage services are also chargeable with the GST if the annual turnover for such businesses is RM500,000 (S$188,000) and above," he said.
As of Feb 28, a total of 345,376 businesses had registered for the GST, exceeding the Government's initial target of 300,000.
It was reported that aside from beauty services, cosmetics and other products for skin, hair and body care will also be chargeable with the GST.
The only exclusion will be beauty products sold at airports as items bought at duty-free stores will not be subjected to tax.