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Malaysia To Introduce Tourism Tax

by Mary Swire, Tax-News.com, Hong Kong

12 July 2017


Malaysia's controversial tourism tax looks set to be introduced on August 1, according to reports.

A July 1 introduction date had initially been planned, following the passage of the Tourism Tax Bill 2017 earlier this year. However, senior Government officials have said recently that implementation of the tax will be delayed to August 1 because the customs department is not ready to collect the levy.

The planned levy is to be imposed at tiered rates on hotel rooms, on a per night basis, and is payable in addition to the service charges and GST already in place on room charges.

The rates payable range from MYR2.50 (USD0.58) (for rooms in non-rated hotels) to MYR20 (for five star hotel rooms).

The revenues raised will be ring-fenced for overseas promotion of the country and domestic investment in tourism infrastructure, according to the Ministry of Tourism and Culture.

TAGS: tax | travel and tourism | Malaysia

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