Should the tourism tax be exclusively for foreign visitors?

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The Malaysian Association of Hotels suggests the tourism tax should be exclusively for foreign visitors.

The Malaysian Association of Hotels (MAH) has proposed that the new tourism tax, slated to be implemented in July, should be levied solely on foreign tourists. This suggestion stems from concerns that imposing the tax on both local and international visitors could lead to a double taxation burden for Malaysian citizens, particularly in states that already implement their own room taxes.
Proposal for Foreigner-Only Taxation

MAH president Cheah Swee Hee recommended that the tourism tax should exclusively target foreign visitors. He further suggested a simplified payment structure where foreigners would pay a fixed tax rate once upon entry into Malaysia, irrespective of their duration of stay. This approach aims to streamline the process and avoid potential confusion or perceived unfairness.
Concerns Over Double Taxation

The implementation of the new federal tourism tax, ranging from RM2.50 to RM20 for overnight stays at registered establishments, is set to commence in July. However, several states, including Penang, Melaka, Langkawi, and Kota Baru, already impose similar taxes on room stays. MAH executive director Shaharuddin Mohamad Saaid highlighted this as a potential issue, stating that consumers might end up paying two taxes for the same room, which he deemed unfair and requiring government clarification.
Unregistered Operators and Serviced Apartments

Furthermore, discussions surrounding the tax's implementation have also touched upon the issue of unregistered hotel operators and serviced apartments. Shaharuddin pointed out that these entities, some of which are classified as homestays and are exempted from the new tax, could gain a pricing advantage over registered operators. He urged the federal government to address the regulation of serviced apartments providing accommodation before enforcing the tourism tax.

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Should the tourism tax be exclusively for foreign visitors?

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