Kuala lumpur: 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 stated that the exemption benefits not only the public but also provides an economic boost to the tourism industry, including hotel operators, travel agents, handicraft makers, and small traders.
According to BERNAMA News Agency, various attractive promotions and tourism packages will be introduced to encourage more people to choose Melaka as their main domestic holiday destination. Datuk Abdul Razak emphasized the importance of collaboration with all stakeholders, including local authorities, government departments, tourism agencies, and industry players, to develop a range of promotional packages that will ensure the people of Melaka fully benefit from this incentive.
Prime Minister Datuk Seri Anwar Ibrahim, during the tabling of Budget 2026 themed “Fourth MADANI Budget: A Budget for the People” in the Dewan Rakyat, announced the special income tax relief aimed at encouraging domestic tourism in conjunction with Visit Malaysia 2026. The relief applies to expenses for entrance fees to local tourist centres and cultural programmes.
Anwar, who also serves as the Minister of Finance, mentioned additional incentives for tourism project operators. These include a tax deduction of up to RM500,000 for renovations and refurbishments, and a 100 per cent income tax exemption on increased revenue from tourism packages to Malaysia. Furthermore, companies, associations, or organisations hosting international conferences, trade shows, or incentive programmes are eligible for a 100 per cent income tax exemption on statutory income.
Moreover, companies organising international-level arts, culture, tourism, and sports and recreation competitions involving foreign participants can benefit from a 50 per cent income tax exemption on their statutory income.