The government has agreed to provide special incentives to local travel agencies to prevent contract cancellation arising from the introduction of the tourism tax on July 1, said Malaysian Inbound Tourism Association (MITA) president Uzaidi Udanis.
He said the matter was brought up by Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz on Tuesday in a special meeting to discuss issues related to the tax implementation.
He said the type of incentives would be announced soon after the government had determined a suitable mechanism in granting the incentives.
"Most travel contracts between local and foreign agencies were agreed upon and signed prior to the tourism tax implementation. As such the agreed prices were not inclusive of the tax.
"Events under meetings, incentives, convention and exhibitions (MICE) tourism sector had been planned well in advance. We do not want our members to fork out extra money for the tax or pay compensation for termination of contracts," he told a press conference here today.
The Tourism Tax Bill 2017 which was passed in the last Dewan Rakyat sitting among others allowed tax rates of between RM2.50 and RM20 to be charged for overnight hotel and lodging accommodation.
When winding up the debate, Mohamed Nazri said an estimated RM654.62 million could be collected if the occupancy rate for the 11 million rooms in the country achieved 60 percent.
Meanwhile, Uzaidi said MITA fully supported the government's implementation of the Tourism Tax as the proceeds could be used to promote tourism activities or develop tourism infrastructure and facilities.
"Promotional activities play an important role in promoting tourism destinations. MITA must not be left behind while other countries are boosting their tourism marketing strategies," he said.
-- BERNAMA
Bernama
Thu Jul 06 2017
Uzaidi says MITA fully supported the government's implementation of the Tourism Tax as the proceeds could be used to promote tourism activities or develop tourism infrastructure and facilities. - Filepic
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.