Amanah Youth: New hotel tax suggests gov't coffers running dry
Parti Amanah Negara (Amanah) Youth believed that the introduction a tourism tax was proof that government funds were depleting.
Amanah Youth deputy chief Faiz Fadzil said the tax was nothing but a "desperate" measure by the government to look for additional funds.
The public, on the other hand, will be further burdened with the new tax on top of the 10 percent tax on services and the Goods and Services Tax (GST) at six percent.
Commenting on the confirmation by Tourism and Culture Minister Nazri Abdul Aziz that the tax can raise up to RM654.6 million, Faiz said this would only benefit the government and not the industry.
Parti Amanah Negara (Amanah) Youth believed that the introduction a tourism tax was proof that government funds were depleting.
Amanah Youth deputy chief Faiz Fadzil said the tax was nothing but a "desperate" measure by the government to look for additional funds.
The public, on the other hand, will be further burdened with the new tax on top of the 10 percent tax on services and the Goods and Services Tax (GST) at six percent.
Commenting on the confirmation by Tourism and Culture Minister Nazri Abdul Aziz that the tax can raise up to RM654.6 million, Faiz said this would only benefit the government and not the industry.
"It is not aimed to assist the tourism industry by increasing services in the hotel industry as the industry is privately owned and does not receive subsidies," he said.
"This desperate measure is all due to the government's mismanagement as a result of corruption and leakages which have affected the country's financial resources."
The new tax, he argued, would not be needed if the country's funds did not "disappear" due to corruption.
Faiz also expressed concern that the new policy would affect both the hotel and tourism industries due to the high charges imposed.
"The government should be introducing various incentives which are rakyat-friendly to improve the industry.
"The new tax will affect the tourism industry which will in turn affect job opportunities, wages and businesses of those who depend on this industry," he added.
As such, Faiz urged the government to review the tax before implementing it.
The new tax, which will come into effect on July 1, will see customers paying up to RM20 more a night for hotel rooms.
The tax affects both Malaysians and foreigners and is imposed regardless whether they are on a leisure or business trip.

