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Malaysians won't have to pay tourism tax, says Nazri

KUALA LUMPUR: Malaysians will not have to pay the tourism tax, which is set to come into effect on August 1, said Tourism and Culture Minister Datuk Seri Nazri Aziz (BN- Padang Rengas).

Only foreign tourists will be subject to the tax, at a standard rate of RM10 per room per night across all hotel grades.

“The government is concerned and sensitive to the needs of the people.

“Hence, Malaysians will be exempted from the tax,” he said.

It was previously suggested that Malaysians would be exempted from paying the tourism tax at three-star rated hotels downwards.

The tax rate was also different earlier on, at RM2.50 for non-rated hotels, RM5 for two-star, RM10 for three-star, RM15 for four-star, and RM20 for five-star hotels.

Nazri said the RM10 flat rate across all hotel grades will make the collection process much easier, without the need for a complex mechanism.

On the possible deferment of the tourism tax, he said the starting date for the tax collection will be announced at a later time once the Customs Department is ready, said Nazri, in his reply to Anthony Loke (DAP-Seremban) during a question-and-answer session in the Dewan Rakyat today.

Loke had asked the minister on the latest status of the tax’s implementation.

Nazri said that the tourism tax will not impact the country’s tourist arrival figures.

"Malaysian hotel rates are still cheaper compared to neighbouring countries such as Indonesia and Singapore.

“Furthermore, many countries which implemented similar tourism tax had actually registered an increase in tourist arrivals,” he said.

Nazri had said that the tax is necessary as the revenue collected will be spent on promoting Malaysia overseas and on the upkeep of tourism facilities.

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