KOTA KINABALU: The new Tourism Tax (TTx) must be implemented reasonably to prevent it from burdening the people in these challenging economic times.
Making the call today, Sabah Tourism, Culture and Environment assistant minister Datuk Pang Yuk Ming said the implementation must take the people’s welfare into consideration.
“There is both bad and good, depending on how we look at it. If we look at Sabah, the TTx will definitely increase revenue for the state as we have the highest arrival of tourists.
“We can use it (collected tax) to improve our infrastructure and this will attract more visitors, hence bring more revenue to the state. However, due to the challenging economy, it will be a burden for the locals who usually opt for budget stays.
“Perhaps, there is room to refine the policy whereby the tax can first be implemented on those who can really afford them, like on hotels with three to five star ratings,” he told reporters.
Pang was speaking on the sidelines of the International Workshop on the Sunda Clouded Leopard, held at Le Meridien Hotel, here.
He said the tax issue would be discussed in the upcoming cabinet meeting before the state government makes its stand.
“I think it is important for us to know in detail especially how the tax money will be distributed whether they (the federal administration) will use it on behalf of us or channel it back to Sabah so we can use it to implement tourism-related activities,” he added.
The implementation of the TTx will begin on August 1 this year. Prior to the enforcement date, operators of accommodation premises are required to register their businesses beginning July 1.
Regulated by the Finance Ministry and the Customs Department, the tax is charged at a specific rate on tourists staying at any accommodation premises provided by an operator.
These accommodation premises are buildings including hostels, hotels, inns, boarding-houses, rest houses and lodging houses, held out by the proprietor, owner or manager, either wholly or partly, as offering lodging or sleeping accommodation to tourists for hire or any other form of reward, whether or not food or drink is also offered.