PARLIAMENT | Malaysians will be exempted from the tourism tax, regardless of whether they stay at luxury hotels or budget inns.

Tourism and Culture Minister Nazri Abdul Aziz announced the exemption in the Dewan Rakyat today.

"Whether they stay at five-star or zero-star hotels, all Malaysians are exempt from the tourism tax," Nazri told the House today.

Previously he had said that Malaysians would only be exempt from the tourism tax if they stay at hotels rated three-stars and below.

Meanwhile, Nazri said foreigners will have to pay a flat rate of RM10 under the tax.

He said that for every RM10 collected, RM1 would be returned to the respective state governments to fund their tourism promotion activities.

The tax will be enforced by the Customs Department and is expected to come into effect on Aug 1.

Nazri added that Prime Minister Najib Abdul Razak will make a further announcement on the matter later.