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A quick guide on Malaysia’s upcoming Tourism Tax

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A quick guide on Malaysia’s upcoming Tourism Tax
It was recently announced that Malaysia would soon impose a tourism tax beginning 1 August and here’s what you need to know

Everyone will soon have to pay tax (on top of the goods and services tax and service charge) when they book a hotel stay in the country but the news of the upcoming Tourism Tax (TTx) in Malaysia isn't actually that new. The Tourism Tax Bill was passed in Parliament in April and a few months ago, Tourism and Culture Minister Mohamed Nazri Abdul Aziz has stated that the new tourist tax can raise up to RM654 million — in the event the country hits an occupancy of 60 per cent for the available 11 million "room nights". 

The generated revenue from the tax would then be spent primarily on tourism and infrastructure development throughout Malaysia. Here's a quick guide that might answer all your questions about the Tourism Tax. 

 

When will the tourism tax be implemented: 1 August 2017 

UPDATE: Recent news have unveiled it will be implemented beginning 1 July 2017

Who will it affect: Both Malaysians and foreigners, regardless of the travel purpose

What are the rates: The tax rate is charged by the room and per night as follows...

5-star accommodations - RM20

4-star accommodations - RM10

1- to 3-star accommodations - RM5

Unrated accommodations - RM2.50

Type of accommodations exempted from the tourism tax: Homestays, kampung stays, places that are maintained by religious institutions not for commercial purposes, and accommodation premises with less than 10 rooms

Is the tax necessary? Yes, because the government needs to mitigate uncertainties in the oil-and-gas-industry, according to Tourism and Culture Minister Mohamed Nazri Abdul Aziz. He added that they're expected to collect an estimate of RM800 million annually through the new tax. 

 

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