HERITAGE TAX REPLACED WITH FIXED RATE

January 16, 2012 17:53 PM
Melaka Abolishes 5 Percent Heritage Charge, Replaces It With RM2 Charge
MELAKA, Jan 16 (Bernama) -- The state government has abolished the five percent heritage charge imposed on hotels, lodging houses and homestays and replaced it with a RM2 charge.

Chief Minister Datuk Seri Mohd Ali Rustam said the charge was abolished because of objections by hotel, lodging house and homestay operators who felt it had a negative impact on their businesses.

"Discussions were held today with their representatives whereby they have agreed to the new charge," he told reporters after a dialogue on the heritage charge, here today.

Mohd Ali said based on the RM2 charge, guests would only have to add RM2 to their room rates.

He said the RM2 charge which would involve 12,000 hotel rooms, lodging houses and homestays throughout Melaka was expected to be enforced in April.

"The state expects to collect at least RM4 million each year from the charge, which would be utilised for developing the tourism sector.

"Operators must duly settle the charge monthly with the local authorities such as the Melaka Historical City Council, Hang Tuah Jaya municipal council, Alor Gajah municipal council and Jasin municipal council," he said.

He added that a heritage charge implementing committee would be formed to facilitate the process.

-- BERNAMA