PETALING JAYA: Lovebirds planning to tie the knot after February will have to pay a heftier price for their union as wedding celebrations and services will be subject to the increase in service tax from 6% to 8%.
Fortunately, industry players are coming up with creative ways to help soften the blow for newlyweds-to-be.
On their part, couples are opting for smaller settings of between 100 and 150 guests to keep costs low.
Wedding photographer Paul Kong said his company had introduced special packages, offers and incentives for the big day.
“This includes discounts and bundled services too,” said the founder and director of LaFame Bridal and LaFame Family outlets based here.
Kong said the company previously offered an all-inclusive photography package covering everything from pre-wedding and wedding day attire to make-up styling, albums and more.
“We now offer more flexibility by separating package items, allowing couples to choose what they need most.
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“This way, they can customise their package to reduce costs,” he said, adding that complimentary family portrait sessions were also offered to couples who opted for packages.
He said couples appreciated flexible options, with the free family portrait bit proving to be an attractive “bonus”.
Kong said couples will probably have to pay more for services provided by performers and other entertainment elements.
“Businesses could help by adjusting their pricing or exploring more cost-effective alternatives,” he added.
Malaysian Association of Hotels president Datin Christina Toh said smaller-scale weddings were already an emerging trend.
“It is more personal and some couples prefer to use their budget to go on a honeymoon. Regardless of the rise in service tax, there is still demand for wedding spaces and venues, albeit on a smaller scale,” she said.
Asked whether bookings and payments made before March would be subject to the increased service tax, Toh said this would depend on the contract signed.
Some contracts might state that the rate was subject to prevailing government taxes, she pointed out.
“For those without this clause, the prices stated in the contract cannot increase and the hotel has to absorb the extra,” she added.
Penang Wedding Professionals Association secretary Evon Lye said its members observed that couples were opting for smaller group weddings comprising between 10 and 15 tables.
“We believe the trend will continue this year too. Some couples with budget constraints usually go for a garden ceremony without having a wedding reception and other customary practices,” she added.
Lye confirmed that couples were choosing more affordable packages, adding that the difference between the lowest and highest-tier packages could sometimes work out to RM1,000 per table.
She said venues on certain dates, such as June 1, June 15, Sept 14 and throughout November, were “sold out”.
Under Budget 2024, it was announced that the service tax rate will increase from 6% to 8% on all taxable services, except for food and beverages, telecommunication, vehicle parking spaces, and logistic services, from March 1.
The scope of service tax will also be widened to include karaoke centre services, delivery services, brokerage and underwriting services, as well as logistics services.