11 September 2024 | 14:11

Tipping ban in Kazakhstan: what employees and customers think about it

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Tengrinews.kz - For several days now, there has been discussion in Kazakhstan about potential changes in internal trade rules. According to these changes, cafes and restaurants might be prohibited from charging tips and deposits from customers. Tengrinews.kz decided to find out what food service workers and ordinary Kazakhstani clients think about this.


Tengrinews.kz - For several days now, there has been discussion in Kazakhstan about potential changes in internal trade rules. According to these changes, cafes and restaurants might be prohibited from charging tips and deposits from customers. Tengrinews.kz decided to find out what food service workers and ordinary Kazakhstani clients think about this.

Food service sector

Chef and restaurateur Denis Ermolaev is currently working on one of the establishments in Almaty. Of course, he has heard about the widely discussed news regarding the "potential ban on charging tips and deposits" from guests. Having been in the food service industry for over 25 years, he believes that if such changes are implemented, they should be introduced gradually.

"In Europe, tips are a common practice for showing appreciation for good service and provide additional income for waitstaff, which motivates them to work better. In our country, tips are often included in the bill as part of the expenses for motivating staff. It will take time for guests to get used to leaving tips voluntarily if these percentages are removed from the bill," he noted.

Denis Ermolaev emphasized that sometimes these 10-12 percent are already included in the bill, but guests are not informed about it.

"Including tips in the cost of dishes is a reasonable practice because it makes guests feel like no additional charges are being applied for service. Until the culture of tipping becomes widespread, including service charges in the bill is a necessary measure. Gradually, with changes in guests' attitudes, such charges might naturally disappear," the restaurateur believes.

An entrepreneur from Petropavlovsk, who provided us with the following comment, manages a small cafeteria.

"In cafeterias, a 10-12% service charge is usually not applied because customers choose and pay for their food themselves and then clean up after themselves. In restaurants, where waitstaff serve guests and perform additional tasks, such percentages are included in the bill," said the businessman.

Emin Askerov, a well-known social entrepreneur from the capital who previously managed a café with employees with special needs, also shared his opinion on this matter. Unfortunately, due to life circumstances, the café had to close.

"From my experience, the bill usually includes all expenses and income for the service provided in the food service industry, including service. Additional 10% in the form of tips should be at the customer's discretion and not be a mandatory condition," he noted.

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What visitors think about the issue

Almaty resident Aizhan mentioned that she enjoys visiting various establishments but has recently started to eat less lunch and dinner in cafes and restaurants.

"Last summer, you could comfortably eat at mid-range establishments for 4000-5000 tenge. Now prices are rising, and 5000 tenge is no longer enough due to the additional 10% service charge. To eat well at a good place, you need around 7000-10000 tenge. I am willing to pay 10% for service, understanding its importance for the establishment," the young woman said.

As for deposits, Aizhan believes they could be removed in practice.

"Probably, for restaurants, it’s a kind of guarantee that people won’t run off without paying their bill. But many acquaintances refuse to go to places if they see a deposit of 20,000-30,000 tenge on the table. Sometimes, I have to order extra food just to cover this deposit. In my opinion, it would be better without such a practice, but again, that’s a client’s perspective," she said.

Veronika, who lives in Petropavlovsk, eats at home more often.

"I go to cafes and restaurants when there's a reason or a meeting. Of course, I notice the 10 percent service charge on the bill. But I don’t think the waitstaff actually see that money. So, it would be great if there were an option to choose whether to leave a tip or not, based on the service at the establishment," said the young mother.

What the State Revenue Committee says

"If a taxpayer is registered for VAT, their turnover is subject to VAT. This applies not only to the restaurant business but also to all other sectors, except for medicine, financial services, and other specific areas as outlined in the Tax Code. Therefore, when paying for a service, the client also pays VAT," noted the press service of the State Revenue Committee Ministry of Finance.

It should be noted that earlier, in the corridors of the Senate at the beginning of September, Minister of Trade and Integration Arman Shakkaliyev mentioned that "changes are currently being prepared for the rules of our internal trade."

"We believe that if services are provided to you and the service charge is already included, there should be no additional fees," said the minister at that time.

According to Shakkaliyev, some business owners are reluctant to support such changes, but they are likely to be implemented.

"It’s clear that not everyone is ready to support these changes, but we are preparing them. This concerns mandatory tipping and various charges," added the minister.

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