The government has imposed sales tax of 5% on bottled drinking water effective Jan 1, 2019, taking the beverage industry by surprise.
According to the Sales Tax (Rates of Tax) (Amendment) (No. 3) Order 2018, amendment of first schedule, the sales tax covers natural or artificial mineral water and aerated water not containing sugar or other sweetening matter nor flavoured, as well as ice and snow.
A source with a beverage company said the industry found out about the sales tax just early this month and was taken by surprise.
Spritzer Bhd group financial controller Sow Yeng Chong said the group is aware of the new ruling, although it has not received written notification from the government.