KUALA LUMPUR, June 13 ― The Tourism Tax Bill 2017, which comes into force on July 1, is necessary as it will help expand Malaysia's revenue base, said Minister in the Prime Minister's Department, Datuk Seri Abdul Rahman Dahlan.

He said the introduction was timely as the industry had been experiencing budget cuts, due to falling revenue.

"I personally believe as an economic minister, it is a good tax and will not burden the people,” he told reporters after launching the latest report by the World Bank, "Malaysia Economic Monitor”, here today.

The government recently announced that proceeds from the tax would be used to promote Malaysia overseas and refurbish tourism facilities.

Passed during the last Parliamentary sitting with a majority vote, it would see the imposition of tax rates of between RM2.50 and RM20 for overnight stays at registered hotels and inns. ― Bernama