Selangor Journal

Don’t rush implementing tourism tax like GST

SHAH ALAM, JUNE 14: The tourism industry should not be burdened with more tax regulations that can be detrimental to the country and creating a commotion out of dissatisfactions from various parties.
Universiti Utara Malaysia (UUM) Economic Specialist in the Centre for Economics, Finance and Banking Studies, Prof Dr Amir Hussin Baharuddin said, on the contrary, the industry should instead show features that facilitate various parties because tourism is one of the main contributors to the country’s economy.
He added that the government should also review the tax, if its implementation only cause negative affect on many parties.
“The tax should not be implemented in haste like the implementation of the Goods and Service Tax (GST).
“If possible, do not create too many issues with the tourism industry which brings many good returns. It may bring some benefit, but it also has many negative affect for example Sarawak’s action to leave Tourism Malaysia,” he said.
Meanwhile, another economic specialist, Prof Madya Dr Barjoyai Bardai urged the Tourism Ministry to ensure that any decision made at national level is first being consulted with the administration in every state to avoid creating commotion.
“They should not proceed with the tax as customers will certainly become the victim who will bear the additional cost,” he said.
The Tourism and Cultural Minister, Datuk Seri Mohamed Nazri Abdul Aziz had announced a Tourism Tax between RM2.50 and RM20 for a one-night accommodation, which will definitely be implemented beginning July 1.
The action was criticised by Sarawak Tourism, Arts, Culture, Youth and Sports Minister, Datuk Abdul Karim Rahman Hamzah who had urged the government to postpone it.

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