Datuk Abdul Karim Rahman Hamzah
KUCHING: Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah said the Sabah and Sarawak governments should have been consulted on the 50 per cent departure tax collection before the Bill on it was put to Parliament.
This is because both states have some autonomy over immigration which is enshrined in the Federal Constitution, he told The Borneo Post yesterday.
The Departure Levy Bill 2019 was passed in April, but its implementation has been deferred to Sept 1.
On Friday, Putrajaya announced that beginning Sept 1, passengers leaving the country would be charged a levy of between RM8 and RM150 and that the rates would vary depending on the destination and flying class.
“So if federal government wants to tax anyone exiting the two states (Sabah and Sarawak), they (Finance Ministry) must have the courtesy of telling the two states what they want to do.
“Here is another arrogance shown by Finance Minister Lim Guan Eng,” he said.
According a national news portal report, Sabah is seeking 50 per cent of earnings from the departure levy.
It is looking to discuss keeping up to 50 per cent of revenue from the tourist departure levy, which comes into force next month.
“I will discuss this with the Chief Minister (Datuk Seri Mohd Shafie Apdal) later, and let him bring it up to the Finance Ministry, and see whether we can work on it so that we get back at least 50 per cent,” Sabah Deputy Chief Minister Christina Liew was quoted as saying by The Malay Mail.
According to the report, Liew was unaware of the levy before it was announced by Putrajaya.
She added she was unsure how its implementation would affect the number of visitor arrivals in the state.
“I know that other Asean countries also impose this, but I don’t know how it will affect us until the first quarter of it being imposed. My concern now is whether we will get any of the funds.
“This is another example of how the federal government and ministries should always consult with the state minister first. I was in the dark, I didn’t know.
“I admit that the federal government has refunded us 50 per cent of the tourism tax. I don’t know about this (departure levy), but I would like for this to also be refunded. This will help us improve our infrastructure,” she said.
At present, 50 per cent of tourism tax revenue is distributed back to state governments.
When the tax was initially announced, several quarters expressed concern the departure levy could dampen demand for travel.
The International Air Transport Association cautioned that it could reduce the country’s competitiveness as a travel destination in the region, while the Malaysian Association of Tour and Travel Agents said the levy could affect the Visit Malaysia 2020 target of 30 million international tourists and RM100 billion in receipts.
Abdul Karim, meanwhile, said he fully supported Liew’s call that 50 per cent of the departure tax collected from any exit point in the state be refunded to the state.