in promoting hospitality industry in Malaysia

by Nur Hisyam bin Kamaruddin

lesson #1:

wikipedia

A payment or concession to stimulate greater output or investment.. .

The Free Encyclopedia

large intake of money for businesses and the opportunity for employment in the service industries associated with tourism and hospitality...

Frank Flatters Professor Emeritus Queen’s University, Canada

govt lesson #2:

incentives

1

2

3

4

5

6

incentives for the hotels and

Pioneer Status

Investment Tax Allowance (ITA)

Enhanced Incentives for

Undertaking New Investment in

Hotel and Tourism Projects

Incentives for Reinvestments in

Hotels and Tourism Projects

Incentive for Healthcare Travel

Incentives for the Luxury Yacht Industry

tourism projects

1

2

3

4

5

6

additional incentives for the

Double Deduction on Overseas Promotion

Double Deduction on Approved Trade Fairs

Tax Exemption for Tour Operators

Incentive for Car Rental Operators

Deduction on Cultural Performances

Tax Exemption for Promoting International Conference and Trade Exhibitions 7 Tax Exemptions on the Value of Increased Exports

tourism industry

lesson #3:

2 0 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 5 2 0 0 6 2 0 0 7

Tourist receipts to Malaysia shows no sign of slow-down

with ever-growing number of tourist arrival

n u m b e r o f t o u r i s t a r r i v a l

4 6 . 1 B i l l i o n

4 9 . 6 B i l l i o n

5 6 . 5 B i l l i o n

5 8 . 3 B i l l i o n

5 3 . 4 B i l l i o n

r e c e i p t s

lesson #4:

Tax incentives are relatively unimportant to most investors; investors give greater weight to

simplicity and stability in the tax system than they do to tax incentives. The costs of incentives are high and generally non-transparent because of a

variety of unintended effects.

conclusion lesson #4:

•Government incentives are not among the key factors in most investment decisions.

•The costs of investment incentives are not transparent and are often large.

•The indirect tax system can be a very important and costly source of tax incentives.

•Tax incentives should be made as transparent as possible.

THANK

.

any ques

tion