Penang to continue with its hotel levy despite new federal tourism tax from July

Published on : Thursday, June 15, 2017

Penang to continue with its hotelThe Malaysian state of Penang will carry on with its hotel levy, despite a new federal government tourism tax coming into effect from Jul 1. This would mean that tourists staying in accommodation while in Penang may be subject to two tourism taxes.


The state’s chief minister Lim Guan Eng said that the tax was still needed to promote tourism products in the state. In Penang, those staying in hotels currently have to pay RM3 per room for hotels above four stars and RM2 per room for hotels below three stars.


The federal government tax coming into effect from July will be added to the prices of all types of premises used as accommodation for tourists, such as registered hotels and inns.


Rates start from RM2.50 (US$0.60) a room each night at a non-rated accommodation to RM20 a room each night at a five-star accommodation. According to Malaysian media, Minister Nazri said that states which have implemented their own tourism charges would be asked to stop the collections when the Tourism Tax comes into effect.


Lim expressed concern over the money collected from the national tourism tax saying it would affect businesses if the state removed their own tax. He said a percentage of the money collected from the national tourism tax should be given back to the state.


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