Malaysia tweaks tourist tax

KUALA LUMPUR Malaysia has revised yet again its tourist tax exempting its citizens from paying, while levying a flat MYR10 tax on all foreigners.

Foreigners staying at paid lodgings in Malaysia will be charged a flat rate of RM10 (USD2.30) per night as a tourist tax, while Malaysians will now be exempted from it completely.

Commenting on the changes, Tourism and Culture Minister, Nazri Aziz, said on Wednesday the federal tourist tax was scheduled to apply 1 August.

Earlier the Malaysian government had announced the tax would be charged at a rate of between MYR2 to MYR20 per night depending on the type of accommodation. It also exempted Malaysians if they stayed in accommodation of a three-star or lower category.

However, criticism that suggested staggered rates would be too complicated and would increase the risk of disputes and potential tax evasion forced the government to reconsider.

Malaysia’s Star newspaper quoted the tourism minister addressing Parliament:  “We will impose a RM10 flat rate from five-star to zero-star hotels for foreign tourists, and Malaysians will be exempted from the tax across all classifications of hotels.”

However, there is still some doubt whether the tax will be implemented by the 1 August deadline. There have been repeated revisions of the start-up date prompting criticism from hotels and tour operators.

Tour operators said they need advance notice to advise overseas partners to review pricing and include the new tax.

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