The decision on how the tourism tax revenue should be shared has yet to be finalised, but Sarawak Tourism, Arts, Culture, Youth and Sports Minister Abdul Karim Rahman Hamzah today insists it should be shared equally by Sarawak, Sabah and peninsular Malaysia.

The proposal had initially been made by Tourism and Culture Minister Nazri Abdul Aziz but he later backtracked, saying the Bornean states would only get 10% of the total collection.

Sarawak Chief Minister Abang Johari Openg had in July rejected the 10% proposal as unacceptable because “it was not what had been agreed upon by Putrajaya”.

Sarawak and Sabah had submitted a joint memorandum to Putrajaya on how the tax should be distributed, proposing that it be divided equally between Sarawak, Sabah and peninsular Malaysia.

Karim also said he was unsure when the decision on the tax, implemented from September 1 after a series of delays due to opposition from Sarawak and Sabah, would be finalised.

“Not too sure when,” he told reporters after receiving financial sponsorship for next month’s Sarawak Regatta at his office.

The tax charges foreigners staying at paid lodgings a flat rate of RM10 per night while Malaysians and permanent residents are exempted.

The tax does not apply to homestays and kampung stays registered with the ministry, premises maintained by religious institutions for non-commercial purposes, premises operated by federal and state governments for non-commercial purposes, and premises with four or less rooms.

Nazri said about RM210 million was projected to be collected annually.

Karim also dismissed claims made by Miri MP Dr Michael Teo that small inns, bread and breakfasts (B&B) and homestay facilities in Sarawak were forced to close due to the tourism tax.

Teo had said the tax had made it more difficult for these premises to compete and survive in the current economic climate.

He called for a relaxation of the conditions of the tourism tax.

Karim, however, dismissed the calls, saying the tax was not a deterrent against hotel stay as locals are exempted, and the RM10, or a mere US$2.36, is a paltry amount for foreigners paying more of similar tax in other countries.

“I don’t think it affects small hotels and B&Bs,” he said and brushed the claim aside as being “businessmen looking for ways not to tax taxes”. – October 30, 2017.