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, announced several measures aimed at enhancing the appeal of Malaysia as a tourist destination while tabling the budget at Dewan Rakyat today.
According to BERNAMA News Agency, tourism project operators who carry out renovations and upgrades of business premises will benefit from a tax deduction on eligible expenses incurred up to RM500 thousand. Additionally, tour operator companies will receive a 100 percent income tax exemption on the value of increased income from tour packages to Malaysia. This move aims to further incentivize companies to expand their tourism offerings and attract more international visitors.
Furthermore, Anwar outlined that companies, associations, or organizations involved in organizing international conferences, trade fairs, or incentive events will be eligible for a 100 percent income tax exemption on their statutory income. Meanwhile, companies hosting international arts, cultural, tourism, sports, and recreational competitions with foreign participants will receive a 50 percent tax exemption on their statutory income.
To encourage domestic tourism, a special individual income tax exemption of up to RM1,000 will be offered for expenses on entrance fees to local tourist centers and cultural programs. This initiative is designed to motivate residents to explore and appreciate local attractions as part of the VM 2026 campaign.
In terms of transportation, Anwar announced incentives in the form of a 100 percent exemption on excise duty and sales tax for the purchase of new PROTON and PERODUA cars by taxi and private hire car owners. This measure is intended to modernize and enhance the efficiency of the transportation sector in light of the expected increase in tourist arrivals.
Moreover, HRD Corp is committing RM10 million to cover the cost of courses and allowances for licensed taxi drivers who participate in capacity-building training. This training aims to improve operational efficiency and safety, ensuring a better experience for tourists traveling within Malaysia.
Anwar emphasized the significance of the RM500 million allocation to ensure the success of the Visit Malaysia 2026 campaign. He expressed optimism that the upcoming year would be a special opportunity for the world to experience Malaysia's natural beauty, cultural richness, culinary delights, and the renowned hospitality of its people.