After Years Of Asking Matta Very Happy With Incentives In Budget

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Travel agents' trade group hails tax exemption on increased revenue from inbound tourism packages.
The 2026 budget proposals provide for more than RM700 million to boost tourism, including RM500 million for the Visit Malaysia Year 2026 campaign. (Bernama pic)PETALING JAYA: A tourism trade group has welcomed the 100% income tax exemption on increased revenue from tourism packages to Malaysia proposed in the 2026 budget, a key move for the industry ahead of Visit Malaysia Year 2026
Malaysian Association of Tour and Travel Agents (Matta) president Nigel Wong said the incentive will motivate inbound tourism players to promote the country better to attract more visitors.
“This is something we’ve been asking for over the past few years,” Wong told FMT. “It is a good measure that we’re very happy with. We’re assuming there will be a 100% tax exemption, it sounds like there’s no cap mentioned.
“Ultimately, if the incentives are properly structured and managed transparently, the industry will reinvest their profits into bringing in more tourists.”
Malaysia hopes to attract 47 million visitors and generate RM329 billion in tourism revenue in conjunction with Visit Malaysia Year.
The 2026 budget proposals provide for more than RM700 million to boost tourism, including RM500 million for the VM2026 campaign, RM60 million for marketing and cultural events, RM50 million in matching grants to promote international flights and charters to Malaysia; RM50 million to support arts and heritage entrepreneurs and RM25 million to improve tourism facilities, including preserving Unesco sites declared this year.
Domestic tourists are provided with a special income tax relief of up to RM1,000 for entrance fees to tourist attractions and cultural programmes to encourage Malaysians to also travel during VM2026.
Tourism project operators who renovate and upgrade their business premises will be granted a tax deduction on qualifying expenses.
The Malaysian Tourism Federation hailed the RM1,000 tax rebate as well as income tax exemptions and renovation incentives for tourism operators.
Its president, Sri Ganesh Michiel, said the RM1,000 tax relief reflects the government’s commitment to promoting domestic travel and strengthening tourism.
“With such a substantial investment for tourism in the budget, it is vital that every ringgit is utilised effectively, benefitting only licensed and registered operators who uphold service quality and safety standards, while contributing fairly through taxes,” he said. - FMT

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