KUALA LUMPUR: The revenue collected from the Tourism Tax (TTx) will be channelled back to the states said Tourism and Culture Minister Datuk Seri Nazri Aziz.
"About 75 per cent of hotel rooms are available in the Peninsular, while the remaining 25 per cent are in Sabah and Sarawak.
"Once we start collecting TTx, we will ensure that the revenue will be returned back to the states, including Sabah and Sarawak," he told reporters before joining the crowd for Iftar@KL2017 held at Dataran Merdeka in Jalan Raja, here today.
He said the money then will be used by the states for tourism-related activities and to build tourism infrastructures.
He said currently, the ministry is still finalising the mechanisms before TTx can be implemented on July 1.
"We hope to be able to start collecting TTx on July 1.
"However, we are flexible. If we still cannot finalise it, the tax collection will be implemented in August or September," he said.
Nazri said the TTx collection is necessary after the Federal government decided there was a need to focus its budget on pertinent issues such as rural development, education, defence and security.
"Oil and gas prices have plummeted, thus promotion for tourism is no longer a priority for the government.
"Therefore, we have to figure out a way where we can get the fund from and it must be from a sustainable source.
"Thus, we decided to implement TTx, which is not new for countries like Thailand, Singapore and Indonesia," he said, adding that taxes in those countries are far higher than the rates to be implemented in Malaysia.
Nazri also said previously, Melaka and Penang have collected a similar tax.
"It was a non-issue then but when we decided to implement a similar tax, many people are against it.
"We have no choice but to start collecting TTx or we will have no money for promotions and to build tourism infrastructures," he said.
The implementation was announced by the Customs Department on its website where it also called on operators of accommodation premises to register their businesses from July 1.
The tax collection will be regulated by the Finance Ministry and Customs Department. It will apply to tourists staying at privately operated accommodation premises.
These include hostels, hotels, inns, boarding houses, rest houses and lodging houses.
The tax rate will be fixed at RM20 per room per night (five-star), RM10 per room per night (four-star), RM5 per room per night (one-, two- and three-star), RM2.50 per room per night (one, two and three Orchid) and RM2.50 per room per night (non-rated accommodation premises).
On Iftar@KL, about 10,000 city dwellers joined the event, which takes place every weekend until June 18.
Iftar@KL is a programme organised by the National Culture and Arts Department, Kuala Lumpur City Hall and the Department of Islamic Development Malaysia.
Other activities carried out throughout the programme include distribution of bubur lambuk, Quran recitation, Ramadan lectures, Quran classes, zakat payment services and nasyid performances.
Visitors can also perform terawih prayers together on the field, after which they will enjoy moreh (night feast).
There were also more than 20 food trucks on site.