KUALA LUMPUR, Mar 17 — The government will extend the tourism and service tax exemption for all hoteliers until December 2021 under the Pemerkasa programe to revitalise the economy.

It will also extend tax incentives for all tourism firms until 2022, defer income tax deductions for cinema and spa operators from April until December, and exempt entertainment taxes for operators of theme parks, stage performances, sporting events and competitions, as well as for all movies played in cinemas in the Federal Territories.

"We’re also channelling a one-off special grant up to RM3,000 to more than 5,000 tourism agencies who have registered with the Tourism and Culture Ministry,” Prime Minister Tan Sri Muhyiddin Yassin said today during his nationwide address.

"The government will also give RM600 to homestay entrepreneurs registered with the ministry.

"I believe that in a short period of time when many of us have taken the vaccine, the government is willing to allow them to cross state borders in stages. We may even have a green lane to allow crossing state lines that involve air transportation.

"Give us a little bit of time to assess all the risk factors before we make a decision,” he added.

To reduce the financial burden for operators of hotels, theme parks, convention centres, shopping malls and local air transport companies, the government will also extend the 10 per cent electricity bill discount till June 30, 2021.

"With this discount extension the government will bear the cost which is RM135 million,” added Muhyiddin.