SABAH and Sarawak want “tourism” to fall within the ambit of state powers, said Sabah Tourism, Culture and Environment Minister Masidi Manjun.

He said the joint memorandum signed by the chief ministers of both states on the tourism tax, among others, included “recommendations” for the federal government to “return” the sector back to Sabah and Sarawak.

“We made this recommendation in the joint memorandum… We also also requested that the federal government defer the implementation of the new tax until March next year, as this is when tour operators open new annual accounts,” he said in responding to a question by Kapayan DAP assemblyman Dr Edwin Bosi today.

Tourism is listed as item 25A under the federal list in the Ninth Schedule, after it was handed over in Parliament with the participation of MPs from Sabah and Sarawak in 1994.

The joint memorandum was handed to the federal government following a meeting of Sabah and Sarawak tourism ministers on July 4.

Masidi said Sabah’s stand of opposing the tourism tax was clear even before the tax was passed in Parliament in April.

“We also indicated our rejection of the tax during the Malaysian Tourism Development Committee central meeting last year.

“We no longer oppose the implementation of the tax (following its approval in Parliament), but we are a little upset that the federal government made no effort to consult us on the matter.”

He also expressed disappointment over the change to the distribution of revenue from the tax collection, as stated by Tourism and Culture Minister Mohamed Nazri Abdul Aziz.

Masidi said Nazri had initially said the revenue would be divided between Sabah, Sarawak and Peninsular Malaysia, but later said in Parliament that the two states would get only 10% from every RM10 collected.

He said there was room for both states to compromise on the arrangement, as the Customs Department had yet to implement it. – August 8, 2017.