SABAH last year rejected a proposal for a levy on tourism in the state but the rejection did not register with Tourism and Culture Minister Nazri Aziz, said State Tourism and Culture Minister Masidi Manjun today 

The tourism tax bill was passed with a resounding majority in the Dewan Rakyat on April 5 and Dewan Negara on April 27. 

The Sabah Cabinet on September 9 last year rejected the hospitality levy, as it was then called, with Masidi pointing out that present conditions were not conducive for such a tax.

The state’s tourism sector was just recovering from a security breach in Sabah’s east coast, and the deadly earthquake of 2015.

Masidi told The Malaysian Insight he was baffled how Nazri could have gone ahead with the tourism bill when Sabah had clearly rejected any new levy. 

“Yes, Sabah did reject the levy. But Putrajaya nevertheless proceeded to enact law on it early this year anyway… I believe Sabah and Sarawak MPs voted for it,” he said. 

As Sabah’s neighbour, Sarawak got into a row with Putrajaya over the tax yesterday, social media users had questioned who were the Sabah MPs who had seen through the bill getting passed in Dewan Negara. 

“I believe all of them (Sabah MPs) read newspapers and I will be surprised if they don’t know our (the State Cabinet’s) stand on the levy,” said Masidi.  

Warisan deputy president and Penampang MP Darrell Leiking registered his concern but did not oppose the bill, while it is understood that a number of Sabah MPs were not present when the tourism bill was approved at 5am on April 5.  – June 13, 201

Kota Kinabalu MP Jimmy Wong, who was in Parliament at the time, said Sabah DAP maintained its opposition to the tourism tax, and questioned why Sabah ministers did not raise the same opposition to the bill.

The Sabah Cabinet will meet to decide whether to accept or reject the new levy next Wednesday.

Tourism, Culture and Environment Ministry permanent secretary Datu Rusmadi Sulai is expected to meet with his Sarawak counterpart Friday to discuss the tourism tax. 
 
Meanwhile, in a joint statement today, hoteliers have also called on the federal government to defer the implementation of the tax to next year. 
 
Speaking after a meeting with the state Tourism, Culture and Environment Ministry, Sabah Hotel Association president Christopher Chan said hotel operators would suffer losses as they were bound by contract to maintain their rates with the tour agents. 
 
“Our present contract is valid from April 1 until March 31 next year. But the tax will be implemented on July 1. 
 
“We can’t revise our rates now as that would breach our agreement, and it would be unfair to ask our guest to pay more once they have checked in,” said Chan, adding that the hotel operators are unable to absorb the Tourism Tax.  
 
Tour agents also risked losing business from advance bookings If the hotels revised their rates in the middle of the year due to the tax, he said.

Representatives of  the Sabah Chapter of Malaysian Association of Hotels, Budget Hotels Association, Sabah Backpackers Association and Sabah Tourists Association were also present at the meeting. – June 13, 2017.