MALAYSIA will impose a tourism tax of RM2.50 to RM20 per room daily for hotel accommodation, starting August 1.

The new tax will be regulated by the Finance Ministry and Customs Department.

Operators of accommodation premises are to register themselves effective July 1, the department said in a statement.

They include the proprietor, owner or manager of hostels, hotels, inns, boarding houses, rest houses and lodging houses.

Exempted from the tax are homestays and kampung stays registered under the ministry, premises managed by institutions (education), premises used for training purposes and religious institutions where such facilities are not used for commercial purposes. Premises with fewer than 10 rooms are also exempted.

The tourism tax is based on the rating of the accommodation premises. Five-star accommodations will be levied RM20 per room per night; four-star (RM10); three to two stars (RM5); and orchid and other non-rated accommodation premises (RM2.50).  

The new tax is “a mechanism of cooperation” between the government and industry “to enhance tourism experience”, the statement said. 

“The returns will be used to develop the tourism industry, namely the enhancement of tourism infrastructure and facilities, as well as tourism promotional activities and campaigns for the country,” the customs department said.

“(The revenue collected from the will) be used to protect, preserve and conserve Mother Nature, culture and heritage for the benefit of not just the present generation but also future generations.”

Three major hotel associations – Malaysian Associations of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Associations (MyBHA) – have opposed the new tax. 

MAH president Cheah Swee Hee said hoteliers should not be made to collect tax on behalf of the government.

“While the bill had been passed in Parliament, the association and its members are still unclear on the mechanism as to how the tax would be collected and it collectively opposed the proposed implementation making hotels as tax collection agent, which is detrimental to the hotel and the tourism industry,” he said in April, the month the bill was passed.

Tourism and Culture Minister Nazri Abdul Aziz said the government stands to collect RM654.62 million from the tax. – June 7, 2017.