Malaysia lowers air passenger service charge beyond ASEAN

0 Comment(s)Print E-mail Xinhua, August 30, 2019
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KUALA LUMPUR, Aug. 30 (Xinhua) -- Malaysia reduced its Passenger Service Charge (PSC) for air travelers to destinations beyond the Association of Southeast Asian Nations (ASEAN) starting on Oct. 1, Malaysian Transport Minister Anthony Loke Siew Fook said on Friday.

Speaking at a press conference at his ministry, Loke said the PSC would be reduced from 73 ringgit (17.31 U.S. dollars) to 50 ringgit (11.86 U.S. dollars) nationwide, with the exception of Kuala Lumpur International Airport (KLIA), the country's main airport, while it would remain unchanged for local and ASEAN destinations.

Loke added that it was hoped the reduced tax would encourage the growth of the tourism sector as part of its Visit Malaysia Year 2020 campaign.

"The departure levy was announced by the finance minister during the Budget 2019 presentation, as a means to add government revenue and improve the country's fiscal position," Loke said.

"But at the same time, we hear the people's views on the increased costs, so the Cabinet has decided to reduce the PSC to balance with the departure levy," he said.

The PSC is separate from the departure levy, a tax set to begin on Sep. 1 on travelers taking flights out of Malaysia, with the amount depending on the destination and class of airline flights.

Passengers travelling to countries in ASEAN and flying economy class will face a departure levy of 8 ringgit (1.90 U.S. dollars). Those flying on all other airline classes to the region will have to pay 50 ringgit (11.86 U.S. dollars).

Passengers travelling out of Malaysia to non-ASEAN countries on economy flights will have to pay a departure levy of 20 ringgit (4.74 U.S. dollars) , while those travelling on non-economy flights to such destinations will be charged 150 ringgit (35.57 U.S. dollars). Enditem

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