Thursday, April 25, 2024
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Malaysia tax tiers change

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KUALA LUMPUR: Leaving Malaysia will become more costly, 1 September, when a new departure tax applies for all travellers departing on airlines.

The tax varies from MYR8 (USD1.92) to MYR150 (USD36) and applies to all travellers flying out of Malaysia. It has been introduced to encourage domestic travel. However, it appears to be limited to just airlines excluding bus, trains and ferries that remain channels for tax-free trips.

The lowest tax covers regional economy class air travel within Southeast Asia while the highest rate applies to long-haul flights in business or first class.

Local media claimed the Tourism, Arts and Culture Ministry requested a postponement of the departure levy to after Visit Malaysia 2020. The ministry said the tax might discourage tourists from visiting the country.

Critics believe the tax could also penalise airlines that offer business or first-class travel. It may pressure passengers to downgrade to economy class travel to avoid the higher tax rate.

Local Malaysian newspapers quoted a ministerial order gazetted by the federal government 31 July. An earlier ruling suggested travellers would be taxed MYR20 for trips to ASEAN countries and MYR40 for travel beyond the 10 member countries.

That has now changed. Travellers heading to a neighbouring ASEAN country will pay MYR 8 in economy and MYR50 in other classes of travel.

The lowest departure tax for long-haul flights beyond Southeast Asia is MYR20 in economy and MYR150 in other classes.

Children two years and under are exempt and so are transit passengers who travel to Malaysia to connect with flights to another destination as long as their stay is less than 12 hours.

It is understood the tax does not apply to people leaving Malaysia by private car, motorcycles, cycles, public land or sea transport.

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