The state government will make certain the Federal government honour its promises for a fair allocation of tourism tax revenue to Sabah which depends on tourism to boost its economy.

Minister of Tourism, Culture and Environment Datuk Masidi Manjun affirmed that Sabah stands together with partner, Sarawak in engaging the Federal government to push for more favourable terms in the new tax scheme which has yet to be implemented in the two states.

He said the ministry has not received any orders to apply the Tourism Tax 2017, and reiterated its stand that the new tax law be postponed till March next year.

"It is to avoid additional burden on tour operators who will be forced to pay the tax. But if the Federal government decides to go-ahead, we would strongly urge postponing the implementation of the new tax, so it doesn't disrupt the process of bringing tourists to Sabah" Masidi said.

He was responding to queries on the controversial new tax law at the State Legislative Assembly sitting here yesterday.

Masidi said the government views seriously the implications of the new law to local tourism sector which is among Sabah's vital economic pillars.

"We are committed to defend Sabah's rights for a better deal of the new tax law if it gets enforced" he said, reiterating that Sabah and Sarawak deserve a larger share of the revenue to fund tourism promotion activities in both states.

Masidi underlined both states had been working hard in carrying out their own tourism promotion over the years. Sabah received 1.13 million foreign visitors and 2.23 million domestic visitors, according to the Sabah Immigration Department, which generated a record RM7.25billion of tourism receipts in 2016.

"A joint memorandum on the tax law between Sabah and Sarawak will be presented by both Chief Ministers to the Federal Government to seek clarification and fine-tuning on issues needing attention in the new tourism tax scheme" he said.

Masidi noted that ongoing discussions between the state and federal governments yielded positive developments which include the exemption on the tax on Malaysians, which was announced by Federal Tourism and Culture Minister Datuk Seri Nazri Aziz himself. Foreigners will be charged a flat rate of RM10 per night for all types of hotels and accommodation.

The Federal government's revised 10 per cent tax revenue offer to the two states came under fire from Sabah and Sarawak who were initially promised that the "tourism tax monies will be split evenly by region (peninsular, Sabah and Sarawak) and not based on states.”