THE minister of tourism, culture and environment Sabah, Masidi Manjun has requested the federal government to rethink imposing the Goods and Services Tax (GST) – enforced nationwide on April 1 at six per cent – on domestic flights in Sabah and Sarawak in order to encourage domestic tourism.
The move is supported by the Malaysian Association of Tour and Travel Agents (MATTA). Its vice president (inbound) Tan Kok Liang, said in a release: “In particular, people in Sabah and Sarawak will feel the burden of the GST since air transportation is considered an essential mode of public transportation.
“In addition, East Malaysians travel to West Malaysia for essential travelling such as education, employment, medical purposes and on a need-to basis.”
He said subjecting students to GST for air travel between east and west Malaysia will be a burden to them as there is no alternative public mode of transportation.
“Domestic tourism will be affected, particularly for Sabah and Sarawak where more than 70 per cent of tourists arrive by air. Imposing six per cent GST on domestic flights will cause them to be more costly (on a per-kilometre basis) compared to international flights. Domestic travellers are arguably more price sensitive than international ones.
“This is a clear-cut case of policy makers implementing policies without appropriate consultation with stakeholders. We hope the formal request by the state government of Sabah will be considered positively.”
