Nazri: RM600,000 collected in tourism tax

KUALA LUMPUR: The tourism tax raised RM600,000 in revenue in September, the first month it was implemented, said Tourism Minister Mohamed Nazri Aziz.

However, he said the collection was slow as they were still not collecting from hotels that were not registered.

“We are just starting. They (hotels) are all complying. People don’t know yet. We are not collecting from some hotels who are not registered yet,” he told reporters at the Dewan Rakyat.

He is optimistic the collection will grow as the ministry is in the process of registering the hotels.

The hotels, the Umno minister said, are given two months to register with the ministry and comply with the new tax.

The tourism tax was initially supposed to be introduced in August this year and the rates were supposed to be according to hotel star rating, with five-star hotels being charged the most.

However, following protests, the tax was only imposed on foreigners at a flat rate of RM10 per room per night for all hotel classifications.

The tax does not apply to homestays and kampung stays registered with the ministry, premises maintained by religious institutions for non-commercial purposes, premises operated by federal and state governments for non-commercial purposes, and premises with fewer than four rooms.

The ministry said Malaysia was projected to collect RM210 million in tourism tax revenue annually.

The money is to be used for promotion and development of tourism in the country.

 

Source freemalaysiatoday.com  – 22 November 2017

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