PUTRAJAYA is ready to enforce the tourism tax on September 1, Tourism and Culture Minister Nazri Abdul Aziz said today.

The government has conducted a discussion with the Malaysian Customs Department and it is ready to implement it, he said.

“We have already finalised the collection method with the Customs Department. It has to start and we believe if it progresses well, we will be able to collect RM200 million in the first year,” he said after launching the Pasareka design market in Kuala Lumpur today.

Nazri reiterated that local tourists and permanent residents would be exempted from the tourism tax.

Foreign tourists boarding at premises, including hotels, inns, rest houses and motels, would be charged a flat rate of RM10 per room per night.

Last month, Nazri said the tax will also not be imposed on accommodations with fewer than five rooms and homestays registered with Tourism Malaysia.

Nazr also said that he doesn’t understand why hotel associations are making a big deal out it.

“It is only RM10 and we are not taxing the hotels. They are not paying for it and they are collecting their 10% service charge.”

Nazri said that he will be using the funds collected to promote tourism locally and internationally.

“Out of the RM10 collected, I will be giving RM1 base on the collection from each state as a token. The rest of it will be used for promotions, such as advertisements abroad and locally… I will promote the local tourism in each state.”

Nazri also said that he doesn’t understand why Sabah and Sarawak are unhappy and are asking for more funds.

“If I were to give the funds according to states, then Sabah, Sarawak and Labuan won’t get much because most of the rooms are in the peninsula. The three states only have 16% of the rooms and the rest in the peninsula.

“I don’t know why the two Barisan Nasional states are making noise. I can understand if Penang or Selangor attacks me. If they want to discuss, they can come and see me.”

The tourism tax was passed during the last parliamentary session and gazetted on June 21. – August 24, 2017.