KUCHING: The state government has already negotiated with the federal government on the tourism tax collection and now the negotiation is still ongoing and not yet finalised.
Chief Minister Datuk Amar Abang Johari Tun Openg said that one of his requests is that the tourism tax collection should be disbursed equally to the three regions, Sabah, Sarawak and West Malaysia.
“The collection must be given directly to the state government and not through agencies under the federal government.
“There are a lot more things to be discussed as the discussion is not over yet, because our tourism industry is still in infancy stage,” he said when met by reporters during his first day Hari Raya Aidilfitri open house at Borneo Convention Centre Kuching, last Sunday.
He stressed that the tax collection should not burden the people, and therefore they have agreed that lodging in the hotels under three stars are exempted of its tax collection for Malaysian citizen.
“During our meeting with Prime Minister, Datuk Seri Najib Tun Razak, we were also talking about a compromise that the federal government must disburse the tax collection based on region.
“Tax is under federal and tourism is under us (state). Therefore, under federal constitution, imposing tax is a federal matter and they have the right on finance,” he pointed out.
Johari added that the local government only can charge fee on hotels but not on tax as it is federal matter.
“There is a conflict, and we are discussing on its now to solve the matter,” he said.
He mentioned that the metrology is not final yet, so by 1st July 2017, the tourism tax could not be imposed in the state.
“Other than that, it is because there are also forward booking matters that did not include the tax and this may infringe the contracts between our hoteliers and tourist overseas,” he said.
He stressed that they will have to discuss further and will going to have a common stand with Sabah.
Meanwhile, thousands of people from different races came to the open house that been held for two days in a row.
Abang Johari commented that this year the celebration was very lively although the economic were not that vibrant.
“The visits shows that the unity among Sarawakian are very strong and I hope and pray that this culture should be continued for the state and our people interest,: he added.
