THE government is considering plans to exempt locals staying in three-star hotels and lower-grade accommodation from the new tourism tax, the Star Online reported today.

“We are studying this and will be making an announcement soon,” Treasury secretary-general Dr Mohd Irwan Serigar Abdullah said after launching the Global Entrepreneurship Competition yesterday.

He said collection of the tax would be handled by the Customs Department, which has a system in place for the classification of hotels.

The tourism tax is set to be enforced from July 1, with hotel guests charged between RM2.50 and RM20 for overnight stays depending on the hotel classification.

The tax rate, charged on a per-room, per-night basis, is RM20 for five-star accommodation; four-star (RM15); three-star (RM10); two-star (RM5); and non-rated accommodation, including budget hotels (RM2.50). – June 22, 2017.