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Tourism tax: 3-star hotels and below may be exempted

 | June 21, 2017

Treasury secretary-general Mohd Irwan Serigar Abdullah says government still studying the details and will announce certain conditions soon.

Irwan-Serigar-hotelPETALING JAYA: Locals staying at hotels rated three stars and below might be exempted from the new tourism tax, says Treasury secretary-general Mohd Irwan Serigar Abdullah.

He said the government is still studying the details and will make an announcement soon.

“Certain criteria (might be imposed), such as people staying in three-star hotels and below being exempted.

“These are among the things that we are studying and will announce later,” he told reporters after launching the global entrepreneurship competition in Subang near here today.

Asked about the method used to collect the new tourism tax, Irwan said it would be collected by the Customs Department, which is also the agency that enforces the GST.

Tourism and Culture Minister Mohamed Nazri Aziz recently said the new tax would be enforced as scheduled on July 1.

He said the gazette on the tourism tax was automatic and in accordance with the country’s procedures when approved by the Parliament.

The Padang Rengas MP added that the tax was applicable to all registered hotels and inns.

The tourism tax is fixed and charged on a per-room, per-night basis.

The tax is RM2.50 for non-rated hotels, RM5 for two-star hotels, RM10 for three-star, RM15 for four-star and RM20 for five-star.

When winding up the debate on the Tourism Tax Bill in the Dewan Rakyat on April 6, Nazri said the tax would be able to bring in an income of about RM654.62 million if there was a 60% occupancy rate at the over 11 million hotel rooms in the country.


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