Malaysia Announces a Reduction in Airport Fees

Malaysia. KLIA, airports, air transport, levy, taxes

While a new departure tax entered into application on September 1st, the Malaysian government announced a reduction in the passenger service charges (PSC) for international flights at all airports in Malaysia, except Kuala Lumpur International Airport main terminal (KLIA) from October 1.

While passengers in Malaysia must now fetch a new departure tax at all airports ranging from RM8 to RM150- depending of the class of travel and the destination-, the Malaysian government decided to soften the impact of the new levy. Transport Minister Anthony Loke said that, starting from October 1, the new passenger service charge rate for international flights will be fixed at RM50, compared to RM73 previously. It will also apply to Kuala Lumpur International Airport 2 (KLIA2), which is the main airport operation for low cost carrier AirAsia. The latter vehemently fought for a reduction in the levy, telling that KLIA2 standard of services are lower than the ones at the main terminal.

Transport Minister Anthony Loke (Photo: NST/Bernama)

The Minister told however that the PSC rate for domestic and Asean flights at all airports remains at RM11 and RM35 respectively.

According to Loke, those who had already purchased their flight tickets to travel from Oct 1 onwards and had paid the old PSC rate, could request for a refund from the airlines.

He said the government decided to review the PSC charges to reduce tax burden, in light of the new levy tax under the Departure Levy Act 2019 which comes into place on Sept 2.

Loke said the PSC should not be confused with the new departure levy, as the former is charged by the government on all passengers leaving the country for use of airport facilities, and is collected by the airlines on behalf of the airport operator.

In July last year, Malaysia Airports Holdings Bhd had imposed a new PSC of RM73 on passengers using KLIA2 to destinations beyond Asean, which is the same rate applied at the full-service KLIA terminal and RM23 higher than the previous rate of RM50.

“However, the new announcement does not mean that we have gone back to the old system because this PSC is applicable to all international airports, unlike before,” he told reporters here today.

(Source: Bernama)