Dr M: State govts to receive 50pc tourism tax

Prime Minister Tun Dr Mahathir Mohammad speaks during the National Finance Council Meeting 2019 press conference in Putrajaya on May 27, 2019. — Picture by Miera Zulyana
Prime Minister Tun Dr Mahathir Mohammad speaks during the National Finance Council Meeting 2019 press conference in Putrajaya on May 27, 2019. — Picture by Miera Zulyana

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PUTRAJAYA, May 27 — The National Finance Council (NFC) have decided that state governments will receive 50 per cent of tourism tax collected from the states.

Prime Minister Tun Dr Mahathir Mohamad, who also chairs the council, told a press conference today that the allocation will be able to help each state to maintain, promote and market their respective tourist destinations.

“The National Finance Council have agreed to return 50 per cent of the tourism tax collected from each state to the respective states beginning 2019.

“This allocation will be able to assist the state governments maintain, promote and market their tourism destinations and increase tourism statistics,” said Dr Mahathir.

He also announced that the NFC have agreed to increase another RM60 million to protect its environment, mainly forest reserves and marine life starting this year.

The RM60 million allocation will also be able to assist low-income states implement projects in order to increase state revenue.

Dr Mahathir also announced that the Council have also increased the maintenance budget for the Malaysian Roads Records Information System (MARRIS) for roads, bridges and drains that have not achieved the Road Transport Department’s minimum requirement and is not registered under MARRIS.

The allocation cannot be more than 15 per cent of the actual maintenance costs in the previous year or more than RM15 million, whichever is lower.

*A previous version of this story contained an error which has since been corrected.

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