Revised tax split gives Malaysian state governments more tourism funds

Malaysian tourism and culture minister Mohamed Nazri Abdul Aziz has announced that the tourism tax will be split 50:50 between the federal and state governments, rather than 90:10, a welcome move for the Malaysian Association of Tour and Travel Agents (MATTA).

This means that state governments are to receive RM5 (US$1.30) for every RM10 collected in the tourism tax.

This is a sharp contrast to the initial share of 33 per cent, or RM3.30 for every RM10 collected, before the tourism ministry reduced it further to 10 per cent, the percentage used when the tax was implemented.

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