Discussions concerning tourism tax disbursement still ongoing – Abang Johari

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Abang Johari speaks to reporters when met at his Hari Raya Aidilfitri open house. Photo by Chimon Upon

KUCHING: Negotiations on the methodology of disbursing the revenue from tourism tax collection is still ongoing, said Chief Minister Datuk Amar Abang Johari Tun Openg.

“How to disburse (revenue from tourism tax collection) will be based on negotiations because you must understand that tax is under (the) Federal (List), although tourism is under us,” he told reporters when met at his Hari Raya Aidilfitri open house at the Borneo Convention Centre Kuching here today.

Abang Johari said discussions were underway when asked whether the tourism tax had been finalised and whether it would be fully enforced from July 1.

He added that the state government was likely going to have a common stand with the Sabah state government on the tourism tax issue.

When pressed whether the tourism tax would come into effect beginning July 1, he repeated: “It depends on our discussion and it is still in negotiations now.”

Abang Johari said he was aware that the Penang state government had been collecting hotel tax which came under the juridiction of the Local Government Ministry.

He was quick to point out that “Penang charges fee but not tax” while stressing “disposing of tax is a federal matter” as stipulated under the Federal Constitution.

Earlier, he said that negotiations would also touch on whether to exempt three-star hotels and below such as budget hotels from the tourism tax.

“There are a lot of matters we need to discuss,” he reiterated.