01 May 2011

5% Extra Charge on Malacca Hotel Room

Chief Minister Datuk Seri Mohd Ali Rustam explained that the tax was necessary to fund the upkeep and promotion of heritage sites as well as the state's beautification programmes.He said revenues from assessment tax and quit rent collection were insufficient for this.

"The heritage charge will be based on the rental rates of hotels, resorts, chalets, apartments and other tourism facilities that provide lodging," the Chief Minister said, asserting that the heritage fee was expected to bring in around RM12 million per year.

The Malacca Budget Hotels Association, however, protested the move, arguing that the total 21% charge was just too much (6% government tax + 10% service charge + 5% heritage charge).

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