PUTRAJAYA is returning a total of RM67.74 million to state governments in tourism tax revenue, or 50% the amount of tax collected by the states in 2018, said the Finance Ministry.

Finance Minister Lim Guan Eng said the funds would be disbursed to the states by the end of this month, in keeping with the ministry’s promise to do so within the first quarter of 2019.

“The distribution of 50% of the tourism to the states amounts to RM67.74 million. The federal government will also keep its promise… to give the tax revenue to Sarawak,” Lim said in a statement.

Lim mentioned Sarawak in particular because of his tiff with the state’s Tourism, Arts, Culture Youth and Sports Minister Abdul Karim Rahman Hamzah in January, when the latter accused Putrajaya of discrimination by claiming tourism tax revenue had been given to Sabah but not to Sarawak, despite Lim’s clarifications.

A breakdown included in Lim’s statement showed that Sabah collected the largest amount of tourism tax at RM25.34 million in 2018, and received its share of RM12.67 million.

This was followed by Penang, which collected RM21.97 million and received RM10.98 million, and Selangor which collected RM20.60 million and received RM10.30 million.

Sarawak collected only RM5.16 million in tourism tax and will receive RM2.58 million as its share.

The federal tourism tax charged to foreign tourists is RM10 per room per night and 50% goes back to the states as revenue. – March 28, 2019.