This is because the tax collection will be made by the finance ministry, and Najib is the finance minister, says Sarawak minister Abdul Karim Rahman Hamzah.
PETALING JAYA: The Sarawak government plans to hold discussions with Prime Minister Najib Razak over the state’s share of the tourism tax revenue.
Tourism, Arts, Culture, Youth and Sports Minister Abdul Karim Rahman Hamzah said this was because the tax collection would be made by the finance ministry, and Najib is the finance minister.
“Sometimes it is better to discuss such matters discreetly behind closed doors (with Najib) and avoid other issues like why the other states do not get the same amount,” Karim was quoted as saying by the Malaysian Reserve.
Sarawak has been pushing for a larger share of the tourism tax collected in the state, with Karim calling the 10% announced by Tourism and Culture Minister Mohamed Nazri Aziz “unfair”.
“We would want at least 30% of the collection, or even more,” he was reported as saying on Aug 11.
In the Malaysian Reserve report, Karim added that Nazri should not be commenting on the issue as the authority to collect the tax lies with the finance ministry.
He also asked for the tax to be delayed for Sarawak until April 1 next year, saying many local tour agents and hotels had made forward bookings and paid for their packages until early 2018.
The tourism tax comes into force today.
Malaysians and permanent residents will be exempted from paying the tax while foreign tourists will be charged a flat rate of RM10 per room per night for all types of hotel rooms.
The tax will not apply to homestays and kampung stays registered with the ministry and premises with fewer than four rooms.
The government expects to collect about RM210 million in tourism tax annually. -FreeMalaysiaToday
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