Uncertainty over possible tourism tax deferment

PETALING JAYA: The possible deferment of the tourism tax to Aug 1 remains uncertain.

Tourism and Culture Minister Datuk Seri Nazri Aziz was initially quoted by a local news portal as saying that the postponement was because the tourism tax was not ready for implementation.

However when contacted by The Star Online, Nazri declined to confirm the report and suggested that the Customs Department be contacted instead.

Customs Director-General Datuk T. Subromaniam did not confirm the news as well and asked the media to wait for an official announcement.

The tourism tax was initially scheduled to be enforced on July 1 but had met with protests from the Sarawak and Sabah state governments, seeking for its deferment.

It was reported that there are plans to exempt locals staying at three-star hotels and below from the new tourism tax.

Hotel guests will be charged between RM2.50 and RM20 for overnight stays depending on the type of hotel.

The tax is 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 had said that the revenue collected would be used to promote Malaysia overseas and refurbish tourism facilities.

The tax is expected to bring in RM654.62mil, assuming a 60% occupancy rate at over 11 million hotel rooms in the country.