Malacca shelves heritage tax on hotel guests

MALACCA: The ruling to impose a 5% heritage charge on hotel guests here has been shelved with immediate effect and will be replaced by a RM2 charge on every occupied room per day.

Chief Minister Datuk Seri Mohd Ali Rustam said the decision to do away with the charge was reached after a second-round of meetings with local hotel operators as well as representatives from Malaysian Hotels Association (MAH), Malaysian Hotel Owners Association (MAHO) and Malaysia Budget Hotel Association (MBHA).

"I think this is a good start as we are finally able to come up with an agreed resolution on the issue.

"We will collect a flat heritage charge of RM2 instead and the funds will be used for the upkeep of heritage sites," Mohd Ali told reporters here Monday after the meeting.

It was reported in April last year that the state would impose a 5% "heritage charge" on hotel guests from Sept 1.

Mohd Ali said then that the tax was crucial for the state to carry out its beautification programmes as well as to maintain cleanliness, conservation and promotion of heritage sites.

He said about RM12mil was expected to be collected annually.