The government should enact specific tax measures, including tax cuts for the tourism and hotel industries, which have been adversely affected by the movement control order's internal travel prohibition (MCO).

Ganesh Michiel, deputy president of the Malaysia budget and business hotel association (MyBHA), stated in a statement that the state and federal governments should grant tax exemptions for all hotels in 2020 and 2021.

The organization has proposed a special tax incentive for all affected industry participants until 2022.

Ganesh believes the hotel industry's annual sales and service tax (SST) threshold should be raised from RM500,000 to RM1.5 million. Exemptions from the digital services tax should also be allowed by the government.

“Hotel owners are burdened by the digital services tax since online travel agents (OTAs) might pass the levy on to them. It also affects the room's selling price and the hotel's revenue,” he explained.

He requested the government to negotiate a 50 percent reduction for hoteliers on electricity, telecommunications, and water bills until December 2021.

He also urged the government to guarantee that hotels' water, electricity, and telecommunications services would not be interrupted.

“The government must order that all hotel and tourism companies be provided with a suitable installment payment scheme.”

The tourism business has been impacted particularly hard by the on-off travel restrictions that have been in effect since March 2020.

A unique tourism funding program was one of the government's attempts to help the bleeding industry (PTF).

Ganesh, on the other hand, stated that the program had gotten an unfavorable response from members.

“We demand that the government and Bank Negara Malaysia assess the performance of the PTF, which was implemented in 2020.

“We propose that a dedicated division be established under the tourism, arts and culture ministry or the finance ministry to process all loan applications from hotel and tourism industry operators without going through any financial institution.”