Miri City not in favour of tourism tax

Mayor Adam Yii

MIRI: This ‘Resort City’ supports the state government’s stand in opposing the tourism tax to be imposed on hotel rooms or tourist’s accommodation effective July 1 this year.

Miri Mayor Adam Yii said the tourism industry here is still in its infancy and needs incentives from the federal government.

“In fact, we need more incentives to nurture the tourism industry rather than having more charges imposed, which will dampen the industry,” he told The Borneo Post yesterday.

Yii, who is also SUPP Pujut chairman, said the city’s stand is for exemption of tourism tax until the industry is vibrant and thriving.

Miri was named a ‘Resort City’ after achieving city status in 2005.

Assistant Minister of Tourism, Arts and Culture Datuk Lee Kim Shin had on Wednesday this week called for Sarawak to be exempted from this tax, as voiced by Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah and other industry players in the state.

Hotel customers would be required to pay a nightly tax per room of RM20 for five-star hotels; RM10 for four-star hotels; RM5 for one to three-star hotels; and RM2.50 for one, two and three ‘orchid hotels’ as well as unrated hotels.

Premises of accommodation with less than 10 rooms and homestays registered with the government will be exempted from this new tax, which comes into effect after the passing of the Tourism Tax Bill in Parliament, to be in addition to the Goods and Services Tax (GST) and Service Charge.

Source: The Borneo Post

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