Malaysia Tourism Tax is an additional charge imposed on customers for hotel rooms. Most of the public disagree with the tax charge. This is because hotel rooms also have 10 percent service charge and 6 percent GST set on room rates.
The Tourism Tax charge based on the rating of the hotel that starts from the five stars to the unrated hotel. The hotel tax rate is fixed. Customers need to pay a nightly tax per room for 5-star hotels at RM 20, for 4-star hotels at RM 10, 1 to 3-star hotels at RM 5 and for 1 to 3-orchid and unrated hotel at RM 2.
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50. Most the people don’t really agree with this tourism tax. Owner of the hotel needs to register their hotel to the Royal Malaysian Customs Department (RMC or JKDM). If they are not doing so, the government will take legal action to them.The implementation of the tax has been criticized by various parties, especially those in the tourism industry. We need to find a method for tourists so they can receive and facilitate them in Malaysia. Moreover, owner of the hotel said that when they want to implement the new tax the hotels incurring additional costs. For example, the cost of reprogramming of software and credit cards payment facilities.
Customers also have to bear additional costs. For parties in the tourism industry, the tourism tax must abolish because it is seen to hinder the progress of the tourism activities. If our country places too much taxes on tourists, they will have no desire to travel to Malaysia. Due to this cases, tourists will take advantage to book with unregistered and unlicensed hotels. They want the lower cost of accommodation.
They feel too burdened with the tax given. The hotels also can change their rating or operating model to avoid from give the tax to the government and also to give an opportunity to the tourists to stay at their places with affordable costs.