KUCHING: Minister of Tourism, Arts, Culture, Youth and Sports, Datuk Abdul Karim Rahman Hamzah revealed that the tourism tax was one of the main topics discussed during yesterday’s state cabinet conference.
It was Karim’s first state cabinet since his appointment as a full minister.
“A mutual understanding has been reached in a negotiation between Chief Mnister, Datuk Amar Abang Johari Tun Openg and Prime Minister, Datuk Seri Najib Tun Razak.
“We have reached a win-win situation over the matter and that the tax collection will be divided between three regions, Sabah, Sarawak and West Malaysia.
“However, I am concerned about the practicality of the tax implementation which is due on 1 July.
“Notices have not been put out to many hotels throughout the country and many of us do not know how the mechanism of the tax will work such as which party will be doing the collection or how the tax will be channelled later on,” Karim told a press conference held yesterday at Bailtulmakmur.
The Minister said hotels rated three stars and below would be exempted from the tourism tax while hotels rated four stars and above would be subjected to the tax.
“The law has been approved by the federal constitution and we will follow suit and accommodate it. However, there are other salient points regarding the tax that need to be discussed,” said Karim.
Present at the press conference was Permanent Secretary of the Ministry of Tourism, Arts and Culture, Datu Ik Pahon Joyik.
