Another tax! A new ‘tourism tax’ ranging from RM2.50 to RM20 per room per night will be imposed on all hotels, budget hotel and guest houses with not less than 10 rooms in the country, beginning from 1 August 2017.
By the way, tourists also includes Malaysians staying at a hotel. (“Tourist” means any person, whether he is a Malaysian national or otherwise, visiting any place in Malaysia for any of the following purposes, namely… )
The rates are as follows:
The tourism tax rate is fixed according to the ratings below:
- five star: RM20/room/night
- four star: RM10/room/night
- one, two and three star: RM5/room/night
- one, two and three Orchid: RM2.50/room/night
- non-rated accommodation premises: RM2.50/room/night
The tax is supposed to be used to “develop the tourism industry” and to “protect, preserve and conserve Mother Nature, culture and heritage…” (What is the GST and corporate tax for?)
This is what the hotel bill will look like for a 3-star hotel room with a room rate of RM160/night
|Room charge/room/night||RM 160 x 1 room/night||RM 160.00|
|Service charge (10%)||RM 160 x 10%||RM 16.00|
|GST (6%)||RM 176 x 6%||RM 10.56|
|TTx (3 star)||RM 5 x 1 room/nigh||RM 5.00|
(Source: Customs website)
Maybe they got the idea from Penang, which already has a ‘Local Government Fee’ of RM2-3 per room per night imposed on all hotel guests from 1 June 2014. (What is the assessment rate for?)
One small hotel manager in Penang I spoke to lamented the new tax: “Mini-markets are already suffering from the GST,” he said. “Now it is the turn of the hotels (with this new tax).”
Homestays, kampung stays, hotels with fewer than 10 rooms, non-commercial accommodation run by religious or government institutions are exempted.
Those inclined toward Cuti-cuti Malaysia will now have to cough up this new tax.
According to Minister Nazri, this new tax could raise RM655m to RM873m based on an overall hotel occupancy rate of 60-80 per cent.
Isn’t the GST collection enough?
More information can be found here.