KUALA LUMPUR: The government plans to provide tax incentives to promote the tourism and cultural sectors in Budget 2026 in conjunction with Visit Malaysia 2026 (VM 2026), said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Minister of Finance, said tourism project operators who carry out renovations and upgrading of business premises will be given a tax deduction on eligible expenses incurred up to RM500 thousand.
Anwar said tour operator companies will also be given an income tax exemption equivalent to 100% on the value of increased income from tour packages to Malaysia.
“Companies, associations or organisations that organise international conferences, trade fairs or incentives are given a 100% income tax exemption on their statutory income.
“Companies organising international arts, cultural, tourism and sports and recreational competitions involving foreign participants are given a 50% income tax exemption on their statutory income,” he said when tabling the Budget 2026 at Dewan Rakyat today.
Meanwhile, he said a special individual income tax exemption of up to RM1,000 was given for expenses on entrance fees to local tourist centres and cultural programmes to encourage people to travel within the country in conjunction with VM 2026.
On providing transport facilities, Anwar said incentives in the form of a 100% exemption on excise duty and a 100% exemption on sales tax would continue for the purchase of new PROTON and PERODUA cars by taxi and private hire car owners.
In addition, he said HRD Corp is providing RM10 million to cover the cost of courses and allowances for licensed taxi drivers who participate in capacity building training to improve operational efficiency and safety.
“RM500 million is to make the Visit Malaysia 2026 campaign a success. Next year will certainly be special, as we welcome the world to visit Malaysia to appreciate the enchanting natural beauty, immerse ourselves in the incomparable cultural diversity, taste a variety of mouth-watering dishes, while being treated to the friendly hospitality of Malaysians,” he said. – Bernama
