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More discussion on tourism tax


The Cabinet has decided that more consultations will be held between the federal and state governments on the benefits of tourism tax, Transport Minister Datuk Seri Liow Tiong Lai said.
He said Cabinet members supported the tourism tax and believe that any issues could be resolved.
“Everyone gave their views at the Cabinet meeting. Now we will “harmonies” the decisions that have been made,” he told reporters after the ministry’s post-Cabinet meeting here yesterday.
The tourism tax has met with some resistance from Sabah and Sarawak, with the Penang Government reported to have said that it would maintain its existing hotel tourism charge when Putrajaya implements the new tourism tax on July 1.
Liow said Cabinet members supported the tourism tax, which would be used to develop the tourism industry and bring benefits to all states, including Sabah and Sarawak.
Asked to respond to the view that the collection of the tourism tax should be shared with the states, Liow said this could be further deliberated between the Federal and state governments.
“This is a non-issue. Whatever views they have, they can discuss them with the Tourism and Culture Ministry,” he said, adding that its Minister Datuk Seri Nazri Aziz has already given his explanation.
On Tuesday, it was reported that Nazri said he was willing to meet Sarawak state minister Datuk Abdul Karim Rahman Hamzah to talk things through after their public spat over the new tourism tax issue.

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