SIBU: The tourism tax introduced last September should be left as it is since it does not burden the Malaysian public, says Minister of Tourism, Arts, Culture, Youth and Sports Datuk Abdul Karim Rahman Hamzah.
“Tourists and foreigners are merely required to pay a minimal sum.
“Why must Malaysian Association of Tour and Travel Agents (Matta) now call for its abolition? It is just a small amount to pay by tourists and foreigners – RM10 per room per night which is a small amount if we take the exchange rate of US$, £ (Sterling Pound) or (Euro).
“Unless Matta can show us that tourist arrivals are very much affected by this restructured tourism tax, I believe we should just leave the tax as it is.”
Abdul Karim said this yesterday in response to Matta’s call to abolish Tourism Tax (TTx), which came into effect on Sept 1 last year, charging a flat rate of RM10 per room per night on foreigners staying in hotels or registered private accommodation.
Its president, Datuk Tan Kok Liang, reportedly said tourists were welcomed to have an enjoyable holiday experience and spend freely on accommodation, food and beverage, tourist attraction and tour excursion, but collecting tax from them would be counter-productive.
In response, Abdul Karim, who is Asajaya assemblyman, said: “Must every tax that has been passed in Parliament during the previous administration be abolished?
“When (the) idea of tourism tax was first introduced and passed in Parliament, there was much debate and hoohaa by many Malaysians, including from Sarawak.
“The objection primarily was against the tax being imposed on Malaysians as well as states like Sabah and Sarawak asking for a bigger proceed of the tax collection.”
He said due to the objection, the federal government then reviewed the bill and its application, and only imposed it on foreigners.
“Further, after the first four months of application ending December 2017 the federal government then decided to give back 50 per cent of all collected tourism tax from each state to the states.
“This is more than what the states including Sarawak have requested for and this tax is not burdening the Malaysian public,” he said.
Sarawak Central Region Hotel Association, however, strongly supports Matta’s call for the abolition of tourism tax.
Its chairman, Johnny Wong Sie Lee, argued that it affects businesses, particularly the budget hotels.
“Furthermore, it is the recession now. Although Sibu does not have many tourists, the foreign workers staying in hotels here are subject to tax too,” Wong lamented. -TheBorneoPost
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