SEPANG: The Selangor State Government will consider giving Sepang International Circuit (SIC) a reduction on entertainment tax for the Petronas Grand Prix of Malaysia (Nov 1-3) but it must be justified.
Datuk Ng Suee Lim, Selangor local government and tourism exco, said a reduction in tax can only be considered for events which bring a major economic impact to the state.
Currently a 25 per cent tax is levied on tickets sold for the Malaysian GP, better known as MotoGP Malaysia. The cheapest ticket on sale for the event - dubbed 'Tiket Rahmah' - currently goes for RM49.90.
Over 200,000 spectators from around the world are expected to attend the event over the three days.
"Entertainment tax is important to generate side income for the Selangor state government, however, I am confident the Menteri Besar (Datuk Seri Amirudin Shari) and the council will consider giving some reduction," said Ng during a press conference at the circuit today.
"Entertainment tax is not new but if the event can justify (tax reduction) by pulling a large number of tourists and maximise economic impact then it can be brought forward for consideration."
Suee Lim, however, hinted that any reduction in tax would not be significant.
SIC and Tourism Selangor today announced a strategic partnership for the Malaysian GP which will see Selangor highlighted as a tourism destination.
Tourism Selangor will hold an exhibition during the event highlighting local attractions including FAMA Selangor, HL Dragon Fruit, Kuala Kubu Bharu white water rafting and paragliding, Jugra paragliding, mangrove kayaking and PLATS Selangor.
Tourism Selangor chief executive officer Azrul Shah Mohamad said motorsports is also a key factor in tourism.
"A lot of people are not aware that sports is also one of the key pillars of tourism. There are many motorsports fans around the world, I myself am a fan of Valentino Rossi," said Azrul at the same press conference.
"A lot of spectators for the Malaysian GP are from Indonesia and they are significant contributors to the tourism receipt here."
Azrul added that he is expecting the partnership between SIC and Tourism Selangor to continue in future years.