IT falls within the local government’s power to decide who can do business within its jurisdiction or to decide on permits/licences for advertisements, building plan approval or development.
Henceforth, shouldn’t the Penang Island City Council (MBPP) determine if all hotels within its jurisdiction be made to pay a new “tourism tax/fee” at a certain rate or if such fee/rate should be doubled, asked lawyer Charles Hector.
“So, why is Penang Chief Minister Chow Kon Yeow being a busy body? He is not part of the local government even if he now has the power to appoint the mayor and local councillors,” Hector who is also a human rights activist pointed out.
This came about as Chow who is also the DAP Padang Kota state assemblyman denied claims in media reports that his state government plans to increase hotel accommodation fees by up to 50% this year.
He further clarified that no such proposals or discussions have been initiated by his administration despite MBPP mayor Datuk Rajendran Anthony having mooted such idea two days earlier – in Chow’s presence – that Penang will consider raising its hotel fees introduced in 2014 by at least 50%.
Visitors who stay at four-star hotels and above currently pay a fee of RM3 per night while those in three-star and below are charged RM2.
“We’ve been considering this increase for some time now. While I can’t provide an exact figure yet, a 50% rise is likely,” Free Malaysia Today (FMT) cited Rajendran as telling the media at the opening of a hotel at Farquhar Street.
This was when Chow who was with him chipped in that the fees had been instrumental in supporting tourism promotions and infrastructure development as well as to meet the demands of Penang’s growing reputation as a world-class tourist destination.
Over RM72 mil has been collected from the Penang island and Seberang Perai city councils till September 2024 from the fee which is levied on hotel stays.
Verdict
Below is Hector’s take on the issue:
“Must the local council obey the Chief Minister or the state government? No unless there is some law that says so …
The Chief Minister and/or a person residing within the local council jurisdiction has the right to express his views/opinions BUT he certainly doesn’t have the power to decide what the local council should or shouldn’t do.
However, if the imposition of this hotel ‘tax’ is by the state government in accordance with the state law, then, of course, the Chief Minister and state government have every right to increase, decrease or even abolish this said tax.
Sometimes, state governments wrongly believe that local authorise are under them – and must do as ordered by the state governments …
If such is the case, why don’t we just abolish local authorities and transfer all their powers/responsibilities/obligations directly to the state governments – no need for political appointments and the local council will just be another state department. – Jan 23, 2025
