Tuesday, February 4, 2025
The Malaysian Tourism Federation (MTF) is urging the government to reinstate the sales tax exemption for tourism vehicles, citing the need for industry recovery ahead of Visit Malaysia Year (VMY) 2026.
With a target of 35 million tourists, the sector requires modern, high-tech buses to enhance service quality and safety.
According to the Ministry of Finance (MoF) website, the exemption which ended on 31 December 2024, was initially introduced to ease financial burdens during the COVID-19 pandemic.
However, as recovery was slow, many operators could not fully utilize the benefit.
Now, with the exemption expired, fleet renewal costs have surged, making it difficult for businesses to invest in vehicle upgrades.
MTF President Datuk Tan Kok Liang highlighted that a 10% sales tax on a single excursion bus adds RM70,000 to RM100,000 in costs, discouraging essential fleet replacement.
He urged MoF to consider a six-month extension until July 2025, as bus delivery takes 6 to 9 months, allowing operators to place orders and modernize fleets in time for VMY 2026.
“If reinstated, this will ease financial pressure, encourage vehicle investments, and boost Malaysia’s appeal as a top tourism destination,” Tan stated.
MTF calls on MoF to review the exemption, ensuring the tourism sector remains competitive in the global market.
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