Hornbill Unleashed

July 22, 2017

Sarawak seeks deferment of tourism tax

Filed under: Politics — Hornbill Unleashed @ 8:02 AM

Sarawak seeks deferment of tourism taxSARAWAK wants the federal tourism tax to be deferred until next year, the Borneo Post reported Chief Minister Abang Johari Openg as saying.

This is because tour agents and hotels have secured bookings and payment for packages into early 2018.

“Give us time, till early next year. Then, we can implement the tourism tax,” said Abang Johari in Samarahan, without giving a deadline.

The tax, passed in Parliament earlier this year, will see both local and foreign tourists being charged a levy for accommodation. It was originally slated to come into effect on July 1, but has been postponed to August 1.

Sabah and Sarawak, however, have agreed to put a hold on the tax until an implementation mechanism is developed.

The Tourism and Culture Ministry recently allowed tour operators under the Malaysia Inbound Tourism Association (Mita) to be exempted from the tax for pre-booked holidays until the end of March next year.

Mita said it feared losses if it had to absorb the tax amount for pre-booked holidays.

Tour operators and agents have to write to the ministry to apply for the exemption.

The tax will be imposed only on bookings for travel dates starting April 1 next year.

Malaysians will be required to pay RM20 in tax for five-star and RM15 for four-star accommodation, chargeable on a per room, per night basis. They will be exempt from the tax if they choose hotels rated three stars and below.

Foreign tourists will be charged the same rates for five- and four-star accommodation, RM10 for three-star, RM5 for two-star and RM2.50 for non-rated accommodation on a per room, per night basis.

Tourism and Culture Minister Mohamed Nazri Abdul Aziz has said the government stands to collect RM654.62 million from the tourism tax. – July 21, 2017.

Source : The Malaysian insigth



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