DPM: Tourism tax issue is now settled

Bernama

PUTRAJAYA: The spat over the tourism tax between Tourism and Culture Minister Datuk Seri Nazri Aziz and the Sarawak and Sabah governments is now resolved, says Datuk Seri Dr Ahmad Zahid Hamidi (pic).

The Deputy Prime Minister said the issue was brought up during the Cabinet meeting on Wednesday, and it was agreed that no more should be said of the matter.

"The Prime Minister chaired the Cabinet meeting and we decided that the issue is resolved, and that no more statements should be made by federal or state leaders.

"I personally met the chief ministers of Sarawak and Sabah on Wednesday. This chapter is closed so let's open a new one," he said at a press conference here.

Dr Ahmad Zahid confirmed that the tourism tax will be implemented, adding that the promotion of tourism requires funds.

However, he did not say how this would affect Sarawak's decision to quit the Malaysian Tourism Board.

The issue came to light when Sarawak Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah called for the Federal Government to defer the implementation of the tourism tax in Sarawak and Sabah.

In response, Nazri chided Abdul Karim over his remarks.

Sarawak later announced that they were withdrawing its representative in the Malaysia Tourism Board with immediate effect, saying that it was a duplication of the role and functions of the Sarawak Tourism Promotion Board.