Government AffairsFleet renewal will be cheaper after tax break

Budget boost for Malaysia’s tour vehicle operators

Operators are being encouraged to renew their tour buses.
Operators are being encouraged to renew their tour buses. Photo Credit: zozzzzo/GettyImages

KUALA LUMPUR - The Malaysian Association of Tour and Travel Agents (MATTA) has applauded the country’s Budget 2020 which includes incentives for the tourism industry.

Following MATTA’s presentations to Minister of Finance, YB Tuan Lim Guan Eng, and top officials from the Ministry of Finance and Ministry of International Trade and Industry, the government has announced accelerated capital allowance for the purchase of completely knocked down (CKD) tour vehicles for two years and a 50% reduction of excise duty for locally assembled vehicles.

MATTA president Datuk Tan Kok Liang said the measure would allow operators a great window of opportunity to replace their ageing vehicles at much reduced cost.

“Modernising fleets will provide greater comfort to tourists during Visit Malaysia 2020 and enhance the image of the country,” he added.

More than a billion ringgit (US$238m) has been allocated to the Ministry of Tourism, Arts and Culture, of which RM90 million (US$21m) has been allocated for promotions.

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