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Why do we have to pay for service charge and government tax when we dine at a restaurant?

Doesn't paying these extra bills only add more to our expenses?Does service charge and government tax differs?Plus,is it REALLY important for us to pay service charge and government tax?Thanks in advance.

4 Answers

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  • Lestat
    Lv 7
    1 decade ago
    Favorite Answer

    Yes paying these charges increases the cost involved. They are two different things; a service charge is paid to the outlet and is usually shared amongst the staff, it is a formal tipping arrangement to ensure staff are given extra for the service on top of their (probably low) wage. If the service was very poor I would refuse to pay any service charge. The tax is set by the government (VAT in the UK) and as added onto the charge, this money isn't kept by the outlet but passed to the government. VAT is charged on a number of things in the UK and i used as a way for the government to gain revenue. The existence of such a tax does increase the cost to the consumer. It is also an inequitable tax in that it taxes everyone the same regardless of their needs and income, there is an argument that such indirect taxes should be removed as the have an inflationary effect on the economy and affect the poorest people the hardest.

  • 1 decade ago

    A service charge should really be voluntary. If it is not it is just a way for the restaurant to disguise how expensive their prices are. As another answerer mentioned a service charge is a formal way of collecting a tip. It saves the embarrassment felt by many at offering money for good service.

    This whole business of tipping has become distorted over the years. A tip should only be given where the service has been exceptional and beyond what would be expected of the employee. But in some industries (and restaurants are probably the worse) it has become accepted practice for staff to have a low basic pay which is topped up from tips.

    VAT is the sales tax imposed by the government. It is imposed on most items but basic necessities are charged at a lower rate (and in a lot of cases at a zero rate).

    In theory this is quite a good tax as it allows the taxpayer some discretion over the amount that is paid. It is possible to live and pay little VAT though you would have no luxury items at all.

    A very poor family should be spending a large proportion of its money on low or zero rate items. So this way it benefits them. But the catch is that when they spend the remaining portion of their income on standard rated items they are paying a disproportionate amount of tax in comparison to their income.

    If we abolished VAT then direct taxes, such as income tax, would have to be increased. This would make people feel hard done by even if the overall tax collected was the same as now.

  • 1 decade ago

    Though it is our expense it is not the income for the restaurant. So we are charged to pay the tax.

  • 5 years ago

    To play devil's recommend for the server: The "In u.s." remark replaced into impolite, confident. however, this style of frustration builds up after years of serving the place human beings from different international places (who won't be savvy to u.s.'s tipping coverage) do not tip properly in any respect. I worked in la, the place some third of my tables have been from different international places (British, chinese language, Mexican, etc.) and approximately 80% of the time i could get decrease than 10% information from them, while individuals tipped me 20% on trouble-free. It makes you grumpy once you get a table of distant places human beings. that is not being racist, that is only basing it on journey. 2nd, human beings have began tipping on the total (at the same time with tax) plenty that further and extra eating places have their servers "tip out" (provide part of your information to the bartenders, bussers, even chefs) in accordance with entire sales at the same time with taxes. a 15% tip is undesirable adequate without it being pre-tax. And approximately you being college scholars who can not arise with the money for to be beneficiant, properly there's a asserting that servers have: in case you could not arise with the money for to tip, you could not arise with the money for to eat out. to not be mean, yet I assure that is what your server replaced into thinking. He could have had a bad day, too, and your table replaced into the final straw. those issues happen. And those different solutions asserting that 15% is a superbly stable tip, they of course do not understand how the eating place industry works. as an occasion, "AB"'s answer up there. that is ridiculous. If she has ever long previous to the comparable eating place two times after tipping the way she's explaining, she's fortunate if diverse servers have not sneezed in her nutrition with the help of now. not tipping on alcohol beverages??? of course you're meant to! Take it from me, an rather server, who can not pay his college training if he gets 15% information all day, and whose provider to his tables is rather well worth the 5 to ten dollars on the effort-free invoice.

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