Langkawi Tourism Revenue Increases 35 Pct To RM2.4 Bln From 2022-2024 - MOF
KUALA LUMPUR, Feb 17 (Bernama) -- Tourist arrivals in Langkawi post-COVID-19 showed an increase of 323,115 people, or 11 per cent, from 2022 to 2024, according to data from the Ministry of Finance (MOF).
During the same period, tourism revenue increased by RM2.4 billion, or 34.9 per cent.
However, "the loss of revenue or excise duties to the government for Langkawi Duty-Free Island due to the tax exemption also increased by RM227.96 million, or 59.7 per cent, involving, among others, passenger vehicles,” the ministry said.
"Therefore, any additional proposals for items under the tax exemption scope will have a direct impact on national revenue collection," said the MoF in a written response on the Parliament website issued on Monday.
This was in response to a question by Datuk Azman Nasrudin (PN-Padang Serai) regarding the annual tax revenue losses borne by the government for Langkawi.
Meanwhile, the MoF also mentioned the amount of revenue from new taxes introduced in 2024, including the Low Value Goods Tax (LVG), valued at RM476.1 million, and the Digital Service Tax (DST), amounting to RM1.6 billion. However, the amount for Capital Gains Tax (CGT), which will be implemented on March 1, 2024, will only be known starting July 1, 2025, after corporate taxpayers submit their Income Tax Return Form (BNCP) for the current assessment year via e-filing.
At the same time, the MOF also stated that the government has no plans to implement the Goods and Services Tax (GST). This is because the existing Sales and Service Tax (SST) has been well understood by businesses and the public, having been in use for over 40 years, and it can still be improved to generate additional revenue for the government more quickly.
This is in contrast to reintroducing the GST, which would require a longer preparation period, both on the part of the government and industries, the MoF explained. This was in response to a question from Datuk Seri Ismail Sabri Yaakob (BN-Bera) regarding the revenue collection from the new taxes and whether the government would reintroduce GST.
-- BERNAMA