A new aviation tax in pipeline

KUALA LUMPUR, 17 August 2017: Following on from a MYR10 tourist tax that comes into effect 1 September, Malaysia is processing a new tax on departing airline travellers.

There are plans to introduce a MYR1 (US$0.23) levy for all passengers departing from Malaysian airports as early as 2018.

ChannelNews Asia said Malaysia aviation regulator  announced details of the new 15 August.

However, before the Malaysia Aviation Commission can apply the new departure fee it will have to pass parliament possibly by October.

Only rural airline services Sabah and Sarawak will be exempt from charging the new fee.

Passenger service charge at all Malaysian airports may also increase from the current MYR50 to MYR73 for all international flights beyond the ASEAN region, beginning January 2018 to standardise the system.

Currently, different rates apply between KLIA1 and KLIA2 international airports.

The passenger service charge for travel within the ASEAN region has been fixed at MYR35.

The new MYR1 levy will raise MYR30 million in the first year.

Earlier, Mavcom reduced the tax on air travel within ASEAN from MYR65 to MYR35, which makes travel within the region cheaper by MYR30 a trip.

The country’s air passenger traffic should grow 7.8 and 8.6% in 2017 with passenger movements expected to hit 99.6 million.

(Source: ChannelNews Asia)