The Malaysian Insight

PUTRAJAYA has climbed down from imposing a wide-ranging tourism tax for hotel accommodation and will instead impose an RM10 room night charge on foreign tourists.

Tourism and Culture Minister Nazri Abdul Aziz said Malaysians will be exempted from the tourism tax.

“Tourism tax will not be imposed on Malaysians. It is only for foreign tourists,” said Nazri during the oral question session in the Dewan Rakyat.

“Similarly, tourism tax will not be imposed on outlets with fewer than five rooms,” he said in response to a question from Anthony Loke (Seremban-DAP).

Nazri added that homestays registered with Tourism Malaysia would also be exempted.

The Customs Department will be the entity that will be implementing the tax.

“They are the ones who proposed that the tax be flat rated,” he said.

The tourism tax was passed during the last parliamentary session and gazetted on June 21.

It was supposed to be implemented on August 1 but postponed after receiving objection from Sabah and Sarawak.

Prime Minister Najib Razak will announce the new date soon. – July 26, 2017.