The Ministry of Finance and The Royal Malaysian Customs Department announced back in June tourism tax levels that were supposed to be implemented effective August 1, 2017. These were scrapped but new flat fee will take effect on September 1.
This means that all hotel accommodations in Malaysia will have new tourism tax instituted come September 1, 2017, in addition to service charge (usually 10%) and GST (6%).
The Star Online reported these changes yesterday. You can access their website here.
The new tax is 10 MYR per night regardless of the accommodation star level which is roughly 2.33 in USD. There are some exceptions to this for religious organizations and premises with less than four rooms. The tax doesn’t apply for for local residents.
The goals of this tax are:
- It is a mechanism of cooperation between the Government and the industry to enhance tourism experience for tourists.
- The returns will be used to develop the tourism industry, namely the enhancement of tourism infrastructure and facilities, as well as tourism promotional activities and campaigns for the country.
- To be used to protect, preserve and conserve Mother Nature, culture and heritage for the benefit of not just the present generation but also the future generation.
Conclusion
It looks almost certain that hotels will start collecting this tax come September 1, 2017. The amount is rather modest but so are hotel rates in Malaysia.
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