Selangor has rejected the tourism tax, describing it as not suitable to be implemented.

Its state executive councillor for Tourism, Environment, Green Technology and Consumer Affairs, Elizabeth Wong, said that given the high inflation rate, the implementation of the tax would bring negative impact to the national economy.

“The introduction of the tax risks slowing the economy and revenue, especially for the hotel and hospitality industry.

“It would result in increased costs for vacations, including accommodations, tour packages, and transport.

“It would also impact hotel room rates resulting in tourism arrivals to Selangor to be affected,” she said in response to an oral question from Ng Tien Chee (Balakong-DAP) at the Selangor state legislative assembly today,

Ng had asked whether the state government would implement the tourism tax and whether this would bring positive impact to the state.

Culture and Tourism Minister Nazri Aziz had on June 27 announced the implementation of the tax at a rate of between RM2.50 for an unrated room to RM20 for a room in a five-star hotel.

Sarawak and Sabah have also objected to the implementation of the tax.

Nazri said the tourism tax would be implemented on Aug 1.

Malaysians who stay at hotels which are rated three stars and below are exempted from paying the tax.

Wong also said that till today the state has yet to receive any formal explanation or information regarding the implementation of the tax from the Customs Department.

She said the Selangor government has proposed that the federal government conduct an in-depth study on the multiplier effect of the tourism tax, especially to those related to the tourism industry.

“A proper system needs to be formulated... it is implemented hurriedly, it would not be successful,” she said.