The Malaysian Association of Tour and Travel Agents (Matta) is seeking a deferment to the soon-to-be-implemented Tourism Tax.

It also wants the Federal Government to give an exemption to those who are ‘necessity travellers.' Its vice-president (Inbound and Domestic) Datuk K.L. Tan said these travellers include those on business trips, seeking medical treatment, attend training courses for their studies, business or job interviews.

"If the collection of the tax is properly managed and utilised it would help the industry grow in the long run, it would have an adverse impact on Sabah and Sarawak that depended heavily on domestic tourism" Tan said.

According to him, although such tax was not new in developed countries, Matta opined that the rate was quite high and should be reviewed and adjusted to a more reasonable rate.

"And for a start, the tax should just cover the five- and four-star hotels and gradually worked towards the lower-rating hotels. It should not be implemented as a blanket tax" he said.

Matta also hoped that the government could be more considerate towards the plight of the people amidst the current economic downturn and the escalating cost of living.

The implementation of the tax was announced by the Customs Department on its website, where it called on operators of accommodation premises to register their businesses from July 1.

Regulated by the Finance Ministry and Customs Department, the tax will be imposed on tourists staying at privately-operated accommodations.

These include hostels, hotels, inns, boarding houses, rest houses and lodging houses.

The tax, however, is exempted on non-commercial accommodation premises operated by the government, or those regulated as "homestay” or "kampungstay” facilities under the Tourism and Culture Ministry.

Similarly, exemptions are given to premises run by religious institutions.

Tourist accommodations are those registered under subsection 31C (1) Tourism Industry Act 1992. The tax will be implemented using a mechanism of cooperation between the government and the industry to enhance the tourism experience for tourists, according to the department.

"Tax returns will be used to develop the tourism industry, namely the enhancement of tourism infrastructure and facilities, tourism promotional activities and campaigns.

"The implementation of this tax is an effort to protect, preserve and conserve Mother Nature, culture and heritage for the benefit of the present and future generations" the Customs Department said.

The tax rate is fixed at RM20 per room per night (five star), RM10 per room per night (four star), RM5 per room per night (one, two and three star), RM2.50 per room per night (one, two and three Orchid) and RM2.50 per room per night (non-rated accommodation premises).