Govt urged to review tax on tourism industry

PETALING JAYA: The Malaysian Association of Tour and Travel Agents (MATTA) is urging the government to review the imposition of service tax to tourism management services, which became effective on Friday.

Its president Datuk Tan Kok Liang, in urging the government to revert to the earlier decision where the tours and travel industry was not subjected to the Sales and Service Tax (SST), described the decision to include tourism management services as one of the taxable services on Jan 1 as "fundamentally flawed".

He said this will create serious adverse implications to the tourism industry, especially when the treatment details and mechanism of reporting are unclear.