Most of our spending goes towards transport, accommodation and dining when we travel. An Industry Guide published by the Royal Malaysian Customs Department defined the application of GST in the travel industry and here’s how we, as a consumer, will be affected it when you travel Domestically and Internationally from April 1, 2015.
GST Effect on the cost of your holidays
*Amended and updated on 26 March 2015
A few other things…
- If a local travel agent has commissioned another travel agent to run an inbound package, GST will be charged on the commission payable.
- GST on Domestic Travel is quite straightforward.
- GST on International Travel will have both standard-rated (6%) and zero-rated elements especially in tour packages. (Eg: the price package for London will be zero-rated but GST will be imposed on commission, airport tax and the passage service charge.)
- No news on airlines absorbing the GST for local flights, thus domestic flight tickets will cost more from April onwards.
Know what you are paying for, it's up to us to understand how GST works.
(Content source: The Rakyat Post)