Locals May Be Exempted From Paying Tourism Tax

Malaysians may not need to pay the new tourism tax if they stay at three-star hotels and below, said Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.

“There are certain categories of people, such as locals, staying at three-star hotels and below who may be exempted. We are studying this and will be making an announcement soon,” he said.

The new tourism tax would be managed by the Customs Department, with its existing system in play with regard to the classification of hotels.

Effective July 1, hotel guests will be charged the tax between RM2.50 and RM20 for one night stay, depending on the type of hotel.

The lowest tax rate of RM2.50 per night will be applicable for non-rated hotels while RM5 for two-star, RM10 for three-star, RM15 for four-star and RM20 for five-star hotels.

According to Tourism and Culture Minister Datuk Seri Nazri Aziz, the taxes collected would be used to promote Malaysia overseas and refurbish tourism facilities.

Assuming 60% occupancy rate at over 11 million hotel rooms in the country, the new tax is expected to bring in RM654.62 million in revenue for the country.

[Source]