KUALA LUMPUR: Money collected from the Tourism Tax, which comes into force on July 1, will be used to promote Malaysia overseas and refurbish tourism facilities, says Tourism and Culture Minister Datuk Seri Nazri Aziz.
He said the ministry needed to find new sources of income to finance its activities after the government reduced its allocation following the decline of world oil prices.
"The provision for tourism has been reduced, however, this does not mean tourism is not a priority of the government, but there are more important priorities such as rural development, education, health and defence," he told reporters here.
He stressed that the tax was not something new as it had already been introduced in Indonesia, Thailand and Singapore.
The Tourism Tax Bill 2017 which was passed in the last Parliament sitting with a majority vote, among others, allows imposing tax rates of between RM2.50 and RM20 for overnight stays at registered hotels and inns. - Bernama