The association’s president, Sri Ganesh Michiel, said the extension could be provided for in the 2022 federal budget and should apply to tourist accommodations in all tax categories including accommodation, tour packages and retail, which were adversely affected by the pandemic.
The government previously extended the SST exemption for hotels until Dec 31 this year to support the tourism sector.
Sri Ganesh also asked the government to increase the annual SST threshold value for the hotel industry from RM500,000 to RM1.5 million.
“This exemption will encourage foreign tourists to come to Malaysia when they are allowed to travel later, and will revive the country’s tourism and hotel industry,” he said.
He also urged the government to monitor e-commerce tourism platforms operated by outsiders to the detriment of existing local licensed travel agencies.
Group managing director of Sutra Travel and Tourism Management, Syed Razif Syed Yasin urged the government to provide an adequate allocation for the tourism industry to invest in digitalisation.
“More interactive local tourism brochures will make it easier to convey information, and digital marketing will be more effective,” he said.
He also suggested that the government extend the moratorium period for the tourism industry following the lifting of the interstate travel ban.