Budget 2026: Special Tax Relief Expected To Boost Perak's Tourism Industry - Exco

IPOH, Oct 12 (Bernama) -- The special individual income tax relief of up to RM1,000 for entry fees to local tourist attractions and cultural programmes, announced in Budget 2026 last Friday, is expected to have a positive impact on Perak’s tourism industry.

State Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee said the incentive would provide a significant boost to the state’s domestic tourism sector, which is known for its eco-tourism, heritage, and cultural offerings.

“This measure will not only directly benefit the people through tax relief but also encourage more local tourists to visit domestic destinations.

“At the same time, it will help stimulate the local economy, particularly among small and medium-sized entrepreneurs in the tourism sector,” he told Bernama.

In this regard, Loh said the state government would continue to intensify tourism promotion efforts through various campaigns and programmes as part of preparations for Visit Malaysia 2026 (VM2026).

Among the main focuses are the promotion of community-based tourism products, local cultural and artistic activities, as well as sustainable tourism initiatives in rural areas.

“We will work closely with industry players and local authorities to ensure that more cultural programmes, festivals and domestic tourism packages are introduced, allowing the people to enjoy meaningful travel experiences while contributing to the state’s economy,” he said.

Loh said the tax relief incentive would also have a positive impact on efforts to revitalise the post-pandemic tourism industry, while encouraging Malaysians to choose local destinations for their holidays.

“Perak has a unique blend of history, nature and culture. With the support of fiscal policies such as this, we are confident that the target of increasing domestic tourist arrivals can be achieved, positioning Perak as one of the key destinations for VM2026,” he said.

He added that the promotion of domestic tourism would also create opportunities for low- and middle-income families to travel and enjoy holidays together - something that may have been difficult for them to do previously.

“This measure will not only encourage domestic spending but also help strengthen family bonds and enhance the social well-being of the people.

“In addition, the government could also consider granting additional leave to those who make use of this incentive, as a way to further encourage Malaysians to plan holidays within the country,” he said.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026, announced a special individual income tax relief of up to RM1,000 for entry fees to local tourist attractions and cultural programmes, aimed at promoting domestic travel in conjunction with VM2026.

Meanwhile, tourism entrepreneurs undertaking renovation works on their business premises will be eligible for tax deductions of up to RM500,000 on qualifying expenses.

-- BERNAMA