Deep Impact on Tourism Tax

Hotel industry in Malaysia would have deep impact on losing its business due to recent announcement made by the government to implement tourism tax on all tourist not only to foreigners but even locals. The effective date would be either on 1 July 2017 or 1 Aug 2017 as we are yet to get clear instruction from the Customs when hotelier shall act on behalf to collect the said tax.

Malaysian Associations Hotel (MAH) were strongly object that we shall not be the tax collector as it would not reap any benefits to the industry and even worse we are require to take into account further expenses on configuring our front end and back end systems. Not only this, we would also incur administrative work for taking care tax account.

The tax rate per room per night varies depending on the classification of the hotel which set as follows:-

5 stars = RM20.00

4 stars = RM10.00

1 to 3 stars = RM5.00

Budget hotels = RM2.50

Well, there are exemptions for those accommodations classified under homestay, kampung stay and premises less than 10 rooms.

We could foresee the AirBnB business would flourish as customer behaviour would tend to change as they would prefer saving a few dollars for something else.

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