The amended version of the Tourism Tax Regulations will not have its scope of authority altered, a parliamentary committee was assured yesterday.
The Third Standing Committee of the parliament met with government officials on the matter for the first time yesterday.
After the meeting, President Vong Hin Fai of the committee confirmed that the committee was given this assurance. Goods or services sold in hotels or similar establishments (such as fine dining restaurants) are subject to the tax regardless of the mode of cooperation between the owner and the operator. Goods or services sold at health clubs (fitness studios), steam baths, massage parlors and karaoke establishments are taxed.
Citing government officials, Vong said that operators will be taxed if their shopping mall is located in a hotel, but will not be subject to the tax if the mall is not. He reminded the public that although the Tourism Tax is currently suspended in response to the Covid-19 pandemic, it will return afterwards.
The committee also reminded the government to clarify the distinction between in-hotel and out-of-hotel shopping malls.
The bill proposes that the taxable price be the price at which the goods and services are provided, even if all or part of the price is waived, for example via a discount offered. Citing the officials, Vong said that hotels or restaurants must report the price list of goods or services provided to the competent authority, and they will be taxed according to the reported price.
The tax will amount to 5% of the actual price or effective price, which is the same level currently in effect. If the price is lower than that indicated in the price list, the tax is still levied according to the price list, so as to avoid operators evading tax through price reductions. AL