{"id":11511,"date":"2026-07-09T01:02:01","date_gmt":"2026-07-09T00:02:01","guid":{"rendered":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/?p=11511"},"modified":"2026-07-09T09:23:02","modified_gmt":"2026-07-09T08:23:02","slug":"malaysian-tourism-federation-mtf-supports-matfas-call-to-abolish-entertainment-tax-and-urges-comprehensive-rationalisation-of-tourism-related-taxes","status":"publish","type":"post","link":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/2026\/07\/09\/malaysian-tourism-federation-mtf-supports-matfas-call-to-abolish-entertainment-tax-and-urges-comprehensive-rationalisation-of-tourism-related-taxes\/","title":{"rendered":"MALAYSIAN TOURISM FEDERATION (MTF) SUPPORTS MATFA’S CALL TO ABOLISH ENTERTAINMENT TAX AND URGES COMPREHENSIVE RATIONALISATION OF TOURISM-RELATED TAXES"},"content":{"rendered":"\n
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Kuala Lumpur, Malaysia, 09 July 2026 \u2013 The Malaysian Tourism Federation (MTF) fully supports the call by the Malaysian Association of Theme Parks & Family Attractions (MATFA) for the abolition of Entertainment Duty, commonly known as Entertainment Tax which was a 73 years old Act and for a comprehensive review of the taxation framework affecting Malaysia’s tourism, entertainment and creative sectors.<\/p>\n\n\n\n

Entertainment Tax is a legacy tax introduced in 1953 during a vastly different economic and social environment when entertainment was perceived as a luxury. Today, entertainment, tourism, theme parks, attractions, cultural experiences and recreational activities are essential components of family life, community wellbeing, domestic tourism, economic growth and national competitiveness.<\/p>\n\n\n\n

The continuation of Entertainment Tax no longer reflects present-day realities. In some jurisdictions, the tax can reach up to 25 per cent of ticket prices, directly increasing the cost of participation for ordinary Malaysians and international visitors. Higher costs inevitably discourage participation and reduce accessibility to family experiences, cultural activities and recreational pursuits.<\/p>\n\n\n\n

The tourism and hospitality sectors are deeply interconnected with the entertainment and creative industries. Every visitor to a theme park, attraction, concert, cultural event or recreational facility generates economic activity that extends far beyond ticket sales. Visitor spending supports hotels, restaurants, transportation providers, retailers, tour operators, local communities and thousands of small and medium enterprises throughout the tourism value chain.<\/p>\n\n\n\n

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Lower ticket prices would encourage greater participation, increase visitor numbers, stimulate domestic spending and create positive multiplier effects across numerous sectors of the economy.<\/p>\n\n\n\n

MTF also wishes to emphasise that the tourism and hospitality industry is already subjected to multiple layers of taxes, levies and charges. These include Tourism Tax, Fi Kelestarian in Selangor and Pahang, Fi Hotel in Perak and the proposed Caj Kembara in Johor, in addition to various licensing fees, compliance requirements and operational costs.<\/p>\n\n\n\n

The continuous introduction of additional taxes and levies while maintaining outdated taxes such as Entertainment Duty places an increasingly heavy burden on consumers, tourism businesses and the broader economy. The industry cannot continue to be viewed as a convenient source of revenue whenever fiscal gaps arise.<\/p>\n\n\n\n

There must be a limit to how many taxes and charges can be imposed before affordability, competitiveness and demand are adversely affected.<\/p>\n\n\n\n

MTF therefore firmly maintains that if additional tourism-related charges are being introduced by various jurisdictions, then Entertainment Tax, which has clearly outlived its original purpose, should be abolished.<\/h4>\n\n\n\n

The Federation further stresses that taxation should never become a substitute for regulatory shortcomings and enforcement failures.<\/p>\n\n\n\n

It is fundamentally unfair and unjust to continue imposing additional taxes and levies on compliant businesses and law-abiding consumers while significant revenue leakages arising from illegal and unregulated operators remain inadequately addressed. The inability to effectively collect revenue from illegal providers should not be compensated by continuously introducing additional financial burdens on those who have consistently complied with the law.<\/h4>\n\n\n\n
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The prolonged delay in regulating Short-Term Rental Accommodation (STRA) has contributed to significant tax leakages and regulatory gaps. Thousands of accommodation transactions continue to occur outside a comprehensive and uniform regulatory framework, resulting in substantial revenue losses and creating an uneven playing field for licensed operators who are already subjected to multiple taxes, fees and regulatory obligations.<\/p>\n\n\n\n

The failure to address leakages from illegal and unregulated providers represents a regulatory and enforcement challenge that must be resolved. Governments should focus on plugging these leakages and ensuring fair participation by all industry players rather than continuously introducing additional financial burdens on compliant businesses and consumers.<\/p>\n\n\n\n

MTF has consistently advocated for a fairer and more efficient tourism taxation framework. The Federation has previously proposed that Tourism Tax and similar visitor-related levies be rationalised and, where appropriate, collected through efficient and centralised mechanisms at the country’s entry and exit points. Such an approach would promote fairness, reduce administrative burdens on accommodation providers and minimise revenue leakages.<\/p>\n\n\n\n

Malaysia aspires to become a world-class tourism and creative economy destination. Achieving this ambition requires policies that encourage participation, affordability, investment and growth.<\/p>\n\n\n\n

The country cannot aspire to strengthen domestic tourism, promote family-friendly experiences, attract international visitors and develop globally competitive creative industries while simultaneously imposing increasing layers of taxation on the very sectors that drive these ambitions.<\/p>\n\n\n\n

The time has come for Malaysia to undertake a comprehensive rationalisation of tourism-related taxes and charges.<\/p>\n\n\n\n

Malaysia needs policies that encourage participation, not policies that price people out of experiences.<\/h4>\n\n\n\n

The abolition of Entertainment Tax is not merely an industry request. It is an investment in Malaysians, in tourism, in the creative economy and in the nation’s long-term competitiveness.<\/strong><\/p>\n\n\n\n

For and on behalf of<\/strong>
The Malaysian Tourism Federation (MTF)<\/strong><\/p>\n\n\n\n

DR SRI GANESH MICHIEL<\/strong>
President
Malaysian Tourism Federation (MTF)
+6012-7112888<\/p>\n\n\n\n

We are an Federation registered with the Registrar of Societies under the Societies Act 1966 (Societies Regulations 1984) under the name of the Malaysian Tourism Federation (MTF) with the Registration No. PPM-029-14-10072023 which is responsible to unite independent national tourism associations in Malaysia. Committed to promoting the growth and development of the tourism industry, the MTF provides a platform for member associations to come together, address challenges, advocate for favorable policies, and collaborate on projects to enhance the overall tourism environment in Malaysia.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kuala Lumpur, Malaysia, 09 July 2026 \u2013 The Malaysian Tourism Federation (MTF) fully supports the call by the Malaysian Association of Theme Parks & Family Attractions (MATFA) for the abolition of Entertainment Duty, commonly known as Entertainment Tax which was…<\/p>\n","protected":false},"author":1,"featured_media":11532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,14],"tags":[],"class_list":["post-11511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsrelease","category-the-projects"],"_links":{"self":[{"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/posts\/11511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/comments?post=11511"}],"version-history":[{"count":6,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/posts\/11511\/revisions"}],"predecessor-version":[{"id":11533,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/posts\/11511\/revisions\/11533"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/media\/11532"}],"wp:attachment":[{"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/media?parent=11511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/categories?post=11511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/paparazzi.com.my\/newthemepaparazzi\/wp-json\/wp\/v2\/tags?post=11511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}