M'sia to introduce tourism tax in August

This article is more than 12 months old

KUALA LUMPUR: Malaysia will start imposing a tax on tourists or anyone booking a hotel stay in the country from August, the Customs Department announced on Tuesday.

The tax will see tourists paying a levy to operators for all types of accommodation. It will be imposed on both Malaysians and foreigners regardless of whether they are on a leisure or business trip, New Straits Times reported.

Accommodation such as homestays and kampung stays, premises that are maintained by religious institutions not for commercial purposes, and those with fewer than 10 rooms are exempted.

The rates have been fixed at RM20 (S$6.50) for five-star accommodation, RM10 for four-star accommodation, RM5 for one- to three-star accommodation and RM2.50 for non-rated accommodation.

It will be imposed on top of the Goods and Services Tax and service charge.

The move comes after the Tourism Tax Bill was passed by the Malaysian Parliament in April. -THE STAR/ANN