Zahid: End Tourism Tax spat

PUTRAJAYA: The cabinet has agreed that the public row over the Tourism Tax involving federal ministers and state leaders should stop.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said this following an instruction from Prime Minister Datuk Seri Najib Razak for the spat to end.

“The issue was discussed in the cabinet meeting chaired by Najib on Wednesday and he has asked for the argument to end.

“The prime minister instructed that no statements be issued by leaders from the federal and state governments on the matter.

“The Tourism Tax policy has already been presented in Parliament. So, we will continue with (imposing) the tax as planned,” he said after closing the Warshah Islah (workshop) Islamic Education at Putrajaya International Convention Centre yesterday.

Zahid said he had met with Sarawak Chief Minister Datuk Amar Abang Johari Openg and Sabah Chief Minister Datuk Seri Musa Aman over the issue.

He said both had agreed that tourism promotion required substantial funding.

“The Tourism Tax will be used for promotional purposes based on states, sectors and importance of tourism products.”

On the decision by Sarawak and Sabah to withdraw from the Malaysia Tourism Board, Zahid said: “We have closed the book on it.

“Now our focus is on starting a new chapter.

“I can only say that the dispute has been resolved,” he said.