Financial assistance and tax incentives for tourism players

Muhyiddin addressing the country’s short-term economic recovery plan during a press conference at Putrajaya today. Photo Credit: Radio Television Malaysia (RTM).

By Adrian Lim

KUCHING, June 5: Tourism players throughout the country will be able to obtain financial assistance and receive various tax incentives by the federal government.

As part of the efforts to rejuvenate the tourism industry affected by Covid-19, Prime Minister Tan Sri Muhyiddin Yassin said a few taxation measures will be implemented.

“The budgeted instalment tax payment for businesses under the tourism industry such as travel agencies, hotel operators and airlines for the period of April 1 to September 30 is extended for another three months starting from October 1 to December 31.

“Tourism tax exemption from July 1 until June 30, 2021.

“Service tax exemption for accommodation provided by premises operators extended from September 1 to June 30, 2021.

“Individual income tax exemption up to RM1,000 for travelling expenditure within the country extended until December 31, 2021,” Muhyiddin said when addressing the short-term economic recovery plan during a live telecast on Radio Television Malaysia (RTM) at Putrajaya today.

Muhyiddin added a tourism funding scheme known as Penjana which amounted to RM1 billion will be offered to small and medium enterprises (SMEs) in the tourism sector.

He explained the financial assistance is to assist the tourism players to fund their transformation initiatives as well as to help them to remain competitive in the tourism industry.

The prime minister disclosed that details of the fund will be announced by Bank Negara Malaysia (Bank Negara) in July.

On another note, the prime minister said a sum of RM225 million has been allocated to spur the development of the creative industry through several programmes.

He explained the programmes will be implemented with collaborations of MyCreative Ventures Sdn Bhd, Malaysia Digital Economy Corporation (MDEC) and the private sector.

Muhyiddin believed the allocation is expected to benefit script writers, film directors, production crews and event organisers.—DayakDaily