States to get RM5 for every RM10 collected under tourism tax (Updated)

KUALA LUMPUR: The federal government will increase the amount of tourism tax returned to state governments from RM1 to RM5 for every RM10 of tax collected, the Dewan Rakyat was told today.
Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz said the funds will be returned to the states once every three months for tourism activities and promotions.
"The government, through the Customs Department, will now distribute RM5 for every RM10 collected by the states back to them. The tax collection distribution will be done equally based on the tourism tax collections done in the respective states.
"Every state can use the allocations to further develop their tourism sectors especially in promoting tourism destinations more aggressively, organising tourism activities, human capital development and for periodic maintenance of tourism projects," he said.
Mohamed Nazri was responding to a question from Anthony Loke (DAP-Seremban), about the details of the total tourism tax collected since its implementation.

"The tourism tax on tourists, who stay in paid accommodation premises nationwide, was collected from Sept 1, 2017. It was paid by the premise operators to the Customs Department.
"Based on data collected, the total tourism tax collection from Sept 1 to Dec 31, 2017, was RM39,975,634," he noted.
According to Mohamed Nazri, the process to register premises which rent out more than five rooms, is ongoing via the Customs Department.
He added that the goverment will also ensure that Airbnb accomadtions have more than five rooms, will also be registered and required to pay tax.