MALACCA: Hoteliers in the state will be required to impose a 5% 'heritage' tax on room rates from Sept 1, said Chief Minister Datuk Seri Mohd Ali Rustam. He said the decision to impose the new tax, which will affect some 193 hotels and resorts, was reached during the weekly exco meeting.
"The tax is crucial for the beautification, maintenance, conservation and promotion of heritage sites here," he told reporters here Wednesday. He said assessment tax and quit rent collected were insufficient to upkeep these sites, hence it was necessary to impose the heritage fee.
Mohd Ali added that some RM12mil was expected to be collected annually from the 11,000 rooms of various types offered in the state. Asked whether the new ruling would have a negative impact on the state's tourism, Mohd Ali said it would instead promote growth of the local tourism industry.
-thestar online.
Malacca State Government decision is rather ridiculous since the consumers already paying 6% government tax & 10% service charge. With so called heritage tax, the consumers have to pay a total of 21% extra from the room rates. This will certainly affect the pattern of hotel booking, specially in the long run. And certainly, Malacca will lose out.
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