Sarawak hoteliers oppose additional costs over tourism tax

Published on : Wednesday, September 6, 2017

Malaysian Association of HotelsThe Sarawak chapter of the Malaysian Association of Hotels (MAH) has hit out over the additional costs coming with the tourism tax which came into effect on Sept 1.

Its honorary secretary-general John Teo said that hoteliers would have to spend at least RM5,000 to upgrade their accounting systems, which had just been upgraded two years ago at the cost of RM20,000.

Teo said that the tax is “a further burden for hoteliers”. He added that extra manpower would also be required to ensure that all taxes, including the goods and services tax (GST), are accurately calculated and paid.

In July, MAH’s Penang chapter asked the government to give hotels enough time to make adjustments to their systems before it imposed the tourism tax. This included accounting software and cashier and management systems.

Penang MAH chairman Khoo Boo Lim said that hotels would need to work extra to adapt to the new tax, and might incur extra expenses to reprogramme their management software.

Teo said that there had been several changes regarding collection of tourism tax in the state.

He said that such changes are expected to continue until the tax collection mechanism was finalized by the Customs Department. Malaysians and permanent residents are exempted from paying the tax, which sees foreign tourists charged a flat rate of RM10 per room per night for all types of hotel rooms. The tax does 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.


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