RM1,000 Special Individual Tax Relief Right Step To Boost Domestic Tourism - Melaka Exco

MELAKA, Oct 11 (Bernama) -- The special income tax relief of up to RM1,000 for individuals is the right initiative to revitalise the domestic tourism sector, said Melaka Tourism, Heritage, Arts and Culture Committee chairman Datuk Abdul Razak Abdul Rahman.

He said the exemption not only benefits the people but also provides an economic boost to tourism industry players, including hotel operators, travel agents, handicraft and small traders.

Various attractive promotions and tourism packages will be available to encourage more people to choose Melaka as their main domestic holiday destination.

"We will work closely with all stakeholders, including local authorities, government departments, tourism agencies and industry players, to provide a variety of attractive promotional packages to ensure that the people of Melaka truly benefit from this incentive," he said in a statement.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026 themed Fourth MADANI Budget: A Budget for the People in the Dewan Rakyat, announced that to encourage domestic tourism in conjunction with Visit Malaysia 2026, a special income tax relief of up to RM1,000 will be given on expenses for entrance fees to local tourist centres and cultural programmes.

Anwar, who is also the Minister of Finance, said that tourism project operators who renovate and refurbish their business premises are given a tax deduction of up to RM500,000 on eligible expenses incurred, in addition to a 100 per cent income tax exemption on the increase in revenue from tourism packages to Malaysia for tourism operators.

He said that companies, associations or organisations organising international conferences, trade shows, or incentive programmes are given a 100 per cent income tax exemption on statutory income.

In addition, companies organising international-level arts, culture, tourism, and sports and recreation competitions involving foreign participants are also granted a 50 per cent income tax exemption on their statutory income.

-- BERNAMA