The East Malaysian state of Sabah is mulling imposing an environmental tax on hotels of three stars and above.
State minister Masidi Manjun said discussions over the tax are at an early stage and if sanctioned, a minimal fee would be imposed.
"We might call it an environmental tax, and the money will be put into a transparent trust fund to manage their garbage disposal for environment protection to work better," Masidi said.
He cited complaints by the public over waste disposal in Kota Kinabalu and said it was time to 'take the bull by the horns' before it starts to impact tourism.
"Tourists are coming to Sabah because they love the environment here, but I fear if we do not overcome the current issues, we will lose them and in the end, hurt our tourism industry, which is one of the main contributors to the state's economy," Masidi added.
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