MATTA seeks clarification from Customs on GST

The Malaysian Association of Tour and Travel Agents (MATTA) is seeking clarification over the zero-rated Goods and Services Tax (GST) for packages sold now, but for travelling dates after June 1, the day the consumption tax tumbles to zero.

MATTA president Datuk Tan Kok Liang said the association is not entirely clear on a few aspects, especially the impacts on packages sold earlier.

“For instance, if a tour package is sold today (prevailing GST is 6%), but the travel date is on June 1, 2018 (‘0% GST’ era). What should be the GST rate for such tours? As tour and travel products are sold everyday, clarity is needed as soon as possible.

“MATTA is seeking clarification from the Royal Malaysian Customs Department on this matter,” he said in a statement last Friday.

Despite the absence on clarity, MATTA welcomes the GST’s new rate and hopes it would boost the domestic travel industry.

He said the “0% GST” would promote spending by locals and tourists, and increase Malaysia’s appeal as a travel destination.

“Domestic air tickets between Peninsular Malaysia and Sabah and Sarawak will also be more affordable with zero-rated GST, and will augur well for domestic tourism,” he added.

The association has objected to the imposition of the consumption tax for travel services between West and East Malaysia.

The zero-rated tax, he said, will also align the GST treatment between Labuan, Langkawi and Tioman, and the rest of the country.

Despite the belief that locals prefer international destinations for their vacations, domestic travels account up to 35% of the total transactions.

Source: https://themalaysianreserve.com/2018/05/21/matta-seeks-clarification-from-customs-on-gst/