No tax for lodgings up to four rooms

‘Operators with five or more must pay’

KUALA LUMPUR: It is compulsory for accommodation providers with five or more rooms to register with the Tourism and Culture Ministry as they have to pay tourism tax.

Datuk Seri Nazri Abdul Aziz said his ministry will seek out such operators and make them register.

“Even if a (homestay) operator has five houses with fewer than five rooms in each, if we aggregate them, the operator has more than five rooms. He too has to register,” Nazri said when asked to comment on accommodation providers through services like Agoda and Airbnb that are not registered.

Speaking to reporters after an MoU signing between the Cultural Economy Development Unit Malaysia (Cedu) and the Adelaide Festival Centre here yesterday, he also dismissed a suggestion by the Malaysian Association of Hotels that the levy be collected at exit points such as airports, ports and border points.

Nazri said this was not possible because not all foreigners stayed in hotels or qualified homestays and village stays.

“They might be residents or expats. We are going to charge those who stay in hotels,” he added.

The Government, Nazri said, wants to start collecting tourism tax as soon as possible but this depends on when the Customs Department is ready to do so.

“Aug 1 is still our target but it’s up to Customs,” he said.

He also denied claims by tourism industry players that they did not have many formal meetings with his ministry on tourism tax.

“They’ve got to talk to Customs. The ministry engaged with them last year.

“How many engagements do you need? Twenty? Fifty?” he asked.

Nazri said a framework for the tax collection formulated by Customs is awaiting approval from the AttorneyGeneral’s Chambers.

On Wednesday, Nazri announced in Parliament that Malaysians would be exempted from tourism tax. Foreign tourists will be charged a flat rate of RM10 per room per night for all hotel classifications, but this is not applicable to premises with five or fewer rooms as well as homestays and village stays.

The MoU between Cedu and the Adelaide Festival Centre is aimed at ensuring an ongoing cultural exchange of artistic performances between Australia and Malaysia.

Cedu’s support will enable Malaysian performances at the 2017 OzAsia Festival and, in years to come, provide a platform for contemporary artists from Malaysia to perform in Australia.

The MoU also enables Australian arts industry professionals to conduct masterclasses and knowledgesharing activities here.

They might be residents or expats. We are going to charge those who stay in hotels.

Datuk Seri Nazri Abdul Aziz