A budget hotels’ group is wary about the increase in service tax, while the Malaysian Tourist Guides Council called for improved infrastructure.
Jimmy Leong called for more spending on infrastructure, while Sri Ganesh Michiel said the service tax threshold should be raised.
The Malaysian Budget and Business Hotels Association said a 2% increase in service tax will lead to a rise in costs, inadvertently leading to negative effects in the long-term. Ganesh said raising the threshold to RM1.5 million would allow customers, especially those from the B40 group, to enjoy affordable room rates without feeling burdened by the service tax increase.
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