Kuala lumpur: The special individual income tax relief of up to RM1,000 for entry fees to local tourist attractions and cultural programmes, introduced in Budget 2026 last Friday, is set to positively impact Perak’s tourism industry.
According to BERNAMA News Agency, State Tourism, Industry, Investment, and Corridor Development Committee chairman Loh Sze Yee emphasized that this incentive will significantly boost the state’s domestic tourism sector, renowned for its eco-tourism, heritage, and cultural offerings. He noted that this measure would not only provide direct benefits through tax relief but also encourage more local tourists to explore domestic destinations, stimulating the local economy, particularly among small and medium-sized entrepreneurs in the tourism sector.
Loh highlighted the state government’s commitment to intensifying tourism promotion efforts through various campaigns and programmes as part of preparations for Visit Malaysia 2026 (VM2026). The focus will be on promoting community-based tourism products, local cultural and artistic activities, and sustainable tourism initiatives in rural areas. Collaboration with industry players and local authorities is crucial to ensure the introduction of more cultural programmes, festivals, and domestic tourism packages, offering meaningful travel experiences while contributing to the state’s economy.
The tax relief incentive is also expected to aid in revitalizing the post-pandemic tourism industry and encourage Malaysians to choose local destinations for their holidays. Loh expressed confidence that with the support of such fiscal policies, the target of increasing domestic tourist arrivals can be achieved, positioning Perak as a key destination for VM2026.
Furthermore, Loh mentioned that promoting domestic tourism would create opportunities for low- and middle-income families to travel and enjoy holidays together, which might have been challenging previously. He added that this measure would not only foster domestic spending but also strengthen family bonds and enhance social well-being. Additionally, he suggested that the government could consider granting extra leave to those utilizing this incentive to further promote planning holidays within the country.
Prime Minister Datuk Seri Anwar Ibrahim, while presenting Budget 2026, announced the special individual income tax relief aiming to promote domestic travel in conjunction with VM2026. Additionally, tourism entrepreneurs undertaking renovation works on their business premises will qualify for tax deductions of up to RM500,000 on eligible expenses.