Tourism players are concerned that the government’s decision to reinstate the 10% sales and services tax (SST) on new tour buses will drive up costs for operators and tourists ahead of Visit Malaysia 2026.
JOHOR BARU: Tourism players are concerned that the government’s decision to reinstate the 10% sales and service tax (SST) on new tour buses will drive up costs for operators and tourists ahead of Visit Malaysia 2026 (VM2026).
Malaysian Chinese Tourism Association Johor chapter chairman Edwin Tay said the tax adds to the financial strain on bus operators already struggling with high operating costs.
“As tour operators, we want to provide the best service to tourists and give them an enjoyable and comfortable experience.
“However, many tour operators will now think twice before purchasing a new bus, which ranges from RM700,000 to RM1mil before SST.
“This adds about RM70,000 to RM100,000 in taxes, which is a double burden as tour operators are no longer eligible for diesel subsidies,” he said when highlighting the matter.
Tay said that previously, the government allowed the 10% SST on the purchase of new buses to be exempted. However, the tax exemption period ended on March 31 last year.
“The timing is poor as the tourism industry is gearing up for VM2026 and Visit Johor 2026,” he added.
Tay also said he has raised the issue with the Tourism, Arts and Culture Ministry, hoping that the tax exemption could be granted again.
Similarly, another bus operator, Usman Haron, said the price of new buses has already increased sharply after Covid-19, from about RM520,000 to RM700,000.
He noted that in Malaysia, service buses are allowed to operate for up to 15 years before bus operators have to replace their ageing fleet.
“If this goes on, I am worried that tourists will find alternative modes of transport rather than use our services due to the high cost,” said Usman, who operates a fleet of more than 10 excursion and employee buses.
The government, he said, should consider giving the tax incentive to the sector – a major contributor to the economy.
“Extending the tax exemption will not only support the industry but also ensure safer, well-maintained tour buses on the road,” he added.
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