Service Tax       Presently, service tax of 5% is charged on and paid by any person who carries on business of providing taxable services or selling or providing taxable goods either in any prescribed professional establishment or prescribed establishment. It was proposed in the Budget Speech that the scope of service tax of 5% be further extended to cover the following services :- a. the provision of hire and drive car and hire car whether or not with driver licensed under the Commercial Vehicles Licensing Board Act, 1987 having an annual sales turnover of RM 300,000 and above; b. services provided by employment agencies having an annual sales turnover of RM 150,000 and above; and c. companies providing management services including project management/ coordination services having an annual turnover of RM 300,000 and above. This proposal is to be effective from January 1, 1998.

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