KUALA LUMPUR: The Malaysian Association of Tours and Travel Agents (MATTA) is urging the Government to review the Service Tax (Amendment) Regulations 2018 issued by the Royal Malaysian Customs Department (RMCD) on tourism management services that will be imposed on March 1.
MATTA President Datuk Tan Kok Liang said, "The decision taken by the RMCD to include tourism management services as one of the taxable services on January 1 this year is fundamentally flawed and will create serious adverse implications for the tourism industry especially when the treatment details and mechanism of reporting are unclear".
"Under the service tax model introduced in September 2018, the tour and travel industry was not included in the scope the service tax. When the previous Goods & Services Tax (GST) regime was introduced, the industry was given ample time to make preparations whereas this sudden announcement has left the industry floundering and confused".