Review GST on domestic air travel, urges Masidi
Published on: Saturday, September 05, 2015
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Kota Kinabalu: Sabah has called on the Federal Government to review its stand on imposing the Goods and Services Tax (GST) on domestic air travel between East and West Malaysia. State Tourism, Culture and Environment Minister Datuk Seri Masidi Manjun said it should be exempted from GST, as air travel is an essential service to East Malaysians who are dependent on such mode of transport.
Unlike Malaysians in the peninsula who enjoy alternative transportation services like Keretapi Tanah Melayu (KTM) train services which allow them to travel between states without being charged with GST.
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"But we (Sabahans) do not have any train services connecting Kota Kinabalu and Kuala Lumpur," he said in jest. "Neither do we have ferry service to get there. So, we are dependent solely on air travel."
Masidi said this during the launching of the Malaysian Association of Tour and Travel Agents (Matta) Fair at the Putra World Trade Centre in Kuala Lumpur, Friday.
Hence, Masidi said the description of essential service should apply for the connectivity of Sabah and Sarawak to Kuala Lumpur.
Although he understood that GST will allow the Government to generate some form of revenue, Masidi said the Federal Government stands to gain more if the domestic air travel is further improved as such.
"We can look at other ways (to generate revenue). If we improve travel, then more companies and tourism will make money and the Government could make more from taxes," he said.
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"What is lost now will be better revenue for the Government in future and higher too," he added.
Meanwhile, Masidi said Malaysia should be ready to start implementing electronic visa (e-visa) to attract foreign tourists to the country and enhance the competitiveness of the local tourism sector.
He said the move would facilitate the entry of foreign tourists into the country by cutting down the waiting time to obtain visa approval.
"The Government should be aware of the stiff competition in the tourism sector as other countries which have been working hard to attract tourists to their countries and the introduction of e-visa can help us compete on par with such countries," he said.
Meanwhile, Matta President Hamzah Rahmat said the implementation of e-visa could save time for tourists to obtain visa approval without the need to visit their respective embassies.
"Tourists who have arrived in Asean countries need not apply for visa for other Asean countries, including Malaysia, to facilitate foreign tourists visiting our country," he said.
He said Matta would also be fostering cooperation with tourist associations in Asean countries including Singapore, Indonesia and Thailand to boost the tourism industry following a fall in the value of the Malaysian ringgit.
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"If we have been aggressive and pragmatic with our visa regime, Malaysia could have the advantage with the inbound traffic of tourists into Malaysia but unfortunately this is not the case," he said.
According to him, the fair which has 1,233 stalls offering various quality packages and services is expected to attract more than 100,000 visitors.