Penang has decided not to heed the instruction from Tourism and Culture Minister Nazri Abdul Aziz, who told states to stop collecting hotel room-based local government fees when the tourist tax is enforced on July 1.

Chief Minister Lim Guan Eng said this was "something new" and was never raised when the tourist tax bill was debated in the last sitting of Parliament.

Saying he was surprised by Nazri's statement, Lim added that the Tourism and Culture Ministry has also failed to inform and consult states on this matter...