Tourism tax initial report in October


The initial report on the tourism tax collection will be announced by the Finance Ministry in October, said Ministry of Tourism and Culture (Motac) Minister Datuk Seri Mohamed Nazri Abdul Aziz.

He said the result of the first month after the tax implementation will also be presented by the Treasury.

“I was at the Economic Council meeting with the prime minister earlier today, and the Treasury secretary general has informed us that his side will announce the report on the tax collection in October,” he told reporters at the launch of new “Homestay Malaysia” and “Kampungstay Malaysia” logos in Kuala Lumpur yesterday.

The minister added that the tax is targeted to achieve around RM200 million per year, making its target for year-end this year around RM20 million to RM30 million.

The aim is based on a 60% occupancy rate of the 240,000 hotel rooms that are registered with the ministry.

The Malaysian Reserve recently reported that under the revised Tourism Tax Act 2017, each foreign tourist will be charged a flat rate of RM10 per night stay at all hotel types, while locals are exempted from it.

Although there are concerns on the potential drop in tourist footfall, Mohamed Nazri is optimistic that the tax will spur further growth in the industry.

Meanwhile, he reiterated that homestays and kampung-stays are exempted from this tourism tax as well.

“The tax exemption for the homestays and kampungstays is one of the government’s efforts in developing the industry in the rural economy.”

“These homestays will provide job opportunities for the rural population. They don’t have to migrate to the cities now as they can join the homestay and kampungstay programmes,” he said.

To date, 201 homestays and one kampungstay have been registered with the ministry, which will be given a plaque with the new logos as a recommendation label.

The new logos will be used in all promotional activities, exhibition, printing and marketing abroad for the Malaysian Homestay Programme and Kampungstay Programme.

Motac has received the trademark registration certificate for the logos from the Intellectual Property Corp of Malaysia on July 12.

According to the Trade Mark Regulations 1997, Motac is the registered proprietor of the logos for 10 years from Nov 18, 2015, to Nov 18, 2025.

Thus, Mohamed Nazri said the ministry has the right to take legal action against individuals or companies for any misuse of the logos.