Zero GST augurs well for rural tourism

Kota Kinabalu: Sabah Tourism Board Chairman Datuk Joniston Bangkuai (pic) said more visitors will have the opportunity to explore Sabah’s rural settings following the scrapping of the six per cent Goods and Services Tax (GST) on rural air travel services.

The move was announced by the Prime Minister when he unveiled the Budget 2016 on Oct 23.

“This move augurs well with our efforts to promote rural tourism. There has been growing interest among domestic and foreign visitors to explore and enjoy the rural settings, natural beauty and un-spoilt environment,” he said.

He said the GST exemption was also necessary so as not to burden the rural community from travelling.

“This is a reflection of the government’s sensitivity to the plight of the rural folks,” he said.

Bangkuai also said there is a need for the government to consider extending the exemption to domestic travel in line with the board’s focus to encourage tourism between Sabah, Peninsular Malaysia and Sarawak.

His comments chorused that of State Tourism, Culture and Environment Minister Datuk Seri Masidi Manjun who had earlier called for the Federal Government to review its stand on GST on domestic air travel between East and West Malaysia.

Masidi had noted that GST should be exempted on such travels as air travel is an essential service to East Malaysians who are solely dependent on such mode of transport.

He said Sabahans and Sarawakians do not enjoy alternative transportation services like train to travel between states without being charged with the GST.

Hence, Masidi said the description of essential service should apply for the connectivity of Sabah and Sarawak to Kuala Lumpur.

Source: Daily Express