Zero-rated GST a boon to Sabah tourism – association

KOTA KINABALU: Inbound tourism in Malaysia will be more competitive due to reduced costs as the Goods and Services Tax (GST) goes zerorated starting from June 1 this year.

Malaysia Chinese Tourism Association (MCTA) Sabah Chapter chairman, Lawrence Wong, said the move was great news for the tourism industry.

At present, he said, the six percent GST was imposed on domestic and international tourists who join inbound tours, as well as their spendings while travelling.

“Beginning next month, the GST will be zero-rated, which means that the costs of travelling within Malaysia will decrease substantially. This will enhance the competitiveness of the tourism industry in Malaysia, especially Sabah,” he said.

Wong said, the months of June to September were considered peak season for Sabah tourism, where a significant number of Chinese and Korean tourists would visit the State.

“I believe the zero-rate GST is good news for foreign tourists who travel to Sabah as well,” he said.

He added that the government's decision to zero-rate the GST was a good move in view of the market slowdown and weak purchasing power.

To another question, Wong said, GST was not imposed on Malaysians who signed up for outbound tours.

The Finance Ministry has announced that the GST will be zero-rated for all goods and services in Malaysia until further notice effective June 1, 2018.

The ministry said, the move does not include the goods and services listed in the Goods and Services Tax (Exempt Supply) Order 2014, which will remain exempted from GST.