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Uncertainties about newly-proposed hotel taxation in Malaysia

June 14, 2017 Destination ASEAN No Comments Email Email

Numerous announcements and revised statements have reached the international and regional media over the past days about the implementation of a new hotel taxation scheme in Malaysia starting this year.

According to a spokesperson within the government, The Ministry of Tourism and Culture in Malaysia has decided to announce the implementation of a new Tourist tax starting from the 1st of July 2017. As of today, Asian Trails Malaysia has not received an official confirmation to inform all concerned that the implementation will take place starting from the 1st of July 2017.

There are many uncertainties on how to this tax will be implemented. We do not know how they expect to handle existing bookings, future bookings, the contracts with the hotels and defining the responsibilities of the implementation.

Based on the announcement from the government, the following taxation schedule is proposed. The tax rate is fixed at RM20 per room per night (five star), RM10 per room per night (four star), RM5 per room per night (one, two and three star), and RM2.50 per room per night (one, two and three Orchid) and RM2.50 per room per night (non-rated accommodation premises). Exemptions are made for homestays and kampong stays registered with the Ministry of Tourism and Culture.

The Malaysian Association of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA) have submitted a joint memorandum to the Finance Ministry, RMCD and MOTAC to express their concerns in response to the latest announcement and will expect an official reply from the government shortly.

Asian Trails Malaysia regrets that it cannot confirm any of the above-mentioned with any concrete confirmation of implementation date, status or any other data that gives us some certainty about this new form of taxation. As soon as we know more and have more information about this announcement, we will inform you accordingly.

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