Collection from tourism tax will be used to promote tourism in M'sia: Subromaniam

PUTRAJAYA: The Customs Department revealed that the amount collected from the soon to be implemented tourism tax will be used to promote the nation's tourism industry internationally.

Its director-general Datuk T. Subromaniam reassured hoteliers and accommodation premises that the funds collected would not go into any government funding, instead it will be used to promote the domestic tourism internationally which will eventually benefit them.

"The tax which will be come into effect next month is only chargeable on foreign tourists on a flat rate of RM10 per room per night, which I feel is a small sum for them.

"Locals and those with permanent resident status are exempted from paying the tax," he said after officiating the department's 1Malaysia charity ride (Kakim) 2018 earlier this morning.

He then pointed out that so far some 4,000 accommodation premises and hotels have registered with the department for the tax implementation.

"Those who are yet to register with us, please do so by Aug 31 as we will be implementing this on Sept 1.

"If any of you have any registration problems or enquries about the tax, you are welcome to call us for assistance as our doors are always open for you," he said.

He added that the department will be launching a nationwide programme – Hand Holding – next week to provide hoteliers and premise operators detailed information such as the technical issues on the tax and mechanism as well as assist them with the tax registration.

Earlier this month, Cultural and Tourism Minister Datuk Seri Mohamed Nazri Abdul Aziz said that foreign tourists boarding at hotels, inns, rest houses and motels would be charged RM10 flat rate per room per night.

"The tax, however, will not apply to homestays and kampung stays registered with the ministry, premises maintained by religious institutions for non-commercial purposes, premises operated by federal and state governments for non-commercial purposes, and premises with four or fewer than four rooms.

"Also exempted are Federal and state governments or statutory bodies for education, training or welfare purposes," he said.

Nazri added that the tax was expected to generate RM210 million in revenue every year.

For the purpose of implementing the tax, operators of accommodation premises should register online at