KUALA LUMPUR — Individuals can claim income tax relief of up to RM1,000 on entrance fees to local tourism centres and cultural programmes under Budget 2026, as part of the government’s efforts to boost domestic tourism for Visit Malaysia Year (VMY) 2026.
Finance Minister Datuk Seri Anwar Ibrahim, when tabling the budget in Parliament today, said the measure was aimed at encouraging Malaysians to explore their own country while strengthening the tourism industry’s recovery.
In 2020, the government introduced the tax relief on tourism spending to help the sector recover from the Covid-19 pandemic. The relief ended on December 31, 2022.
Anwar today also said more than RM700 million will be allocated under Budget 2026 to promote VMY 2026, which aims to attract 47 million international visitors and generate RM329 billion in tourism revenue.
RM50 million will support local arts and heritage entrepreneurs, while another RM50 million will be disbursed as matching grants to encourage more international and charter flights to Malaysia.
“Malaysia Airports Holdings Berhad (MAHB) has successfully attracted 10 international airlines to operate routes into Malaysia, including British Airways, Hong Kong Express, and Jiangxi Air,” Anwar said.
An additional RM25 million will be spent on improving tourism infrastructure, including the conservation of UNESCO heritage sites such as Gunung Mulu National Park in Sarawak, Lenggong Valley in Perak, and FRIM Forest Park in Selangor, which was newly declared this year.
Anwar said Langkawi Island would remain a flagship destination for both local and international travellers, with the development of new geopark tourism products such as the Kilim Geoforest Park, Gua Selat Panchor trail, and the geotrail hiking route within the Langkawi UNESCO Global Geopark.
To further stimulate investment and participation in the tourism sector, the government will also introduce several tax incentives for businesses.
Tourism project operators who renovate or refurbish their premises will be entitled to tax deductions of up to RM500,000 on eligible expenditures.
Tour operators will also receive a 100% income tax exemption on additional income generated from tour packages promoting Malaysia.
Companies and associations hosting international conferences, exhibitions, trade fairs or incentive events will enjoy a 100% income tax exemption on related earnings.
Meanwhile, organisers of international arts, cultural, tourism, sports, and recreational events involving foreign participants will be granted a 50% exemption. – October 10, 2025