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By by Mary Swire, Tax-News.com, Hong Kong
11 August, 2017
Malaysia is to proceed with the introduction of a tax on accommodation provided to foreign tourists.
Earlier it had been expected that the levy would apply from either July 1 or August 1; that it would be a progressive levy, ranging between MYR2 (USD0.45) and MYR20, depending on the standard of hotel accommodation; and it would apply to both locals and tourists.
On July 26 the Tourism and Culture Minister Nazri Aziz announced that the tax had been revised to a flat rate fee of MYR10 (USD2.32) across all classes of accommodation on a per room per night basis, with Malaysians exempt from paying the levy. The tax will not apply to homestays or premises with fewer than four rooms.
It is anticipated that it will generate annual revenues of about MYR210m (USD48.8m), which will be used to fund the promotion of Malaysia as a tourism destination.
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