Extend tax reliefs to boost global tourism, says MAH chairman

KUCHING (Oct 8): The Malaysian government’s income tax exemption for one- to three-star hotels ought to be extended to other four and five-star hotels, said Malaysian Association of Hotels (MAH) Sarawak Chapter chairman John Teo.

In sharing the tourism industry players’ wish for Budget 2025, he said a comprehensive and tax efficient strategy will benefit Malaysia’s tourism sector as a whole and position the country as world’s leading destination.

He said one- to three-star hotels which are granted the Pioneer Status can get to enjoy a five-year 70 per cent exemption from the payment of income tax.

By making these incentives applicable to other four- and five-star hotels, he said this will attract high-end tourists to Malaysia and increase national revenue through value-added tourism.

“Such inclusion will encourage four- and five-star hotels to invest in sustainable practices, digital innovation, and workforce development, thus boost efforts towards achieving a sustainable and competitive economy,” he told The Borneo Post’s sister paper Utusan Borneo.

“The association members have also pushed for more tailored incentives, accelerated capital allowances and tax reliefs for the tourism industry players.”

According to Teo, these issues had been constantly raised in every discussion and town hall meetings with the relevant ministries since 2021.

He said with hotels now adopting sustainable practices in line with the Ministry of Tourism, Arts and Culture’s National Tourism Policy 2030, MAH is looking for the government to provide green incentives, grants, or tax relief for hotels that meet the credentials of the environmental, social, and governance (ESG) certification.