Frequent discussions held to urge overseas OTA to register under TOBTAB - MOTAC

KUALA LUMPUR: The Ministry of Tourism, Arts and Culture (MOTAC) is constantly discussing with online travel agencies (OTA) operating overseas to urge them to register under the Tour Operating Business and Travel Agency Business (TOBTAB) regulations so that it can impose taxes on the companies.

Its minister Datuk Seri Nancy Shukri said most of these overseas OTA did not have premises or offices in Malaysia, making it difficult for the ministry to impose legal or enforcement actions on them.

"Most of these online companies are not registered with the ministry. We try to discuss with them, some have registered with the ministry as they have been asked to set up physical premises in our country.

"We urge them to register with us so that we can impose taxes on them," she said during the oral question and answer session in Dewan Rakyat today.

She said this in response to the supplementary question from Datuk Hasanuddin Mohd Yunus (PH-Hulu Langat) who wanted to know the types of taxes that could be imposed on OTA offering tour packages in Malaysia but are operating overseas.

According to Nancy, guidelines on TOBTAB were developed by MOTAC to licence online travel companies that are offering tour packages in the country which is an early measure to enhance regulations on their activities.

She said MOTAC had hosted engagement sessions with several international OTA to ensure that they comply with the Tourism Industry Act 1992 (Act 482) and are registered under the TOBTAB regulations.

She said as a result foreign OTA had opened subsidiaries in the country and were licensed by MOTAC such as Klook Travel Technology Sdn Bhd, Traveloka Sdn Bhd and BEX Travel Malaysia Sdn Bhd.

-- BERNAMA