Malaysia imposes airport departure tax of up to $36

Malaysia Imposes Airport Departure Tax Of Up To $36

Malaysia  will introduce an airport departure levy of up to 150 ringgit ($36) for all passengers flying out of Malaysia, effective September 1, 2019, according to an order by Finance Minister Lim Guan Eng published in the government’s gazette on July 31.

The amount varies depending on the destination and flight class and will be collected by Malaysia Airports Holdings Bhd, Malaysian news reported.

Those flying economy class from Malaysia to other Association of Southeast Asian Nations (ASEAN) member states, they will have to pay a levy of just eight ringgit ($1.92). Those travelling on other flight classes to ASEAN will pay 50 ringgit ($12). 

For flights beyond ASEAN, those travelling on economy class will have to shell out 20 ringgit ($4.80). However, passengers in other flight classes will be charged a whopping 150 ringgit ($36).

Passengers transiting via Malaysia – with a transit period not exceeding 12 hours – will be exempted. Infants below 24 months old are also exempt from the tax.

The levy was proposed last November during the budget announcement. The respective Departure Levy Bill 2019 was passed by parliament on April 10 and is aimed at “encouraging the development of domestic tourism.”

Anyone who tries to avoid or help others dodge the departure levy could face a fine of up to one million ringgit ($240,558), a five-year jail sentence, or both, the order says.

Meanwhile, Kamarudin Meranun, co-founder and executive chairman of discount carrier AirAsia Group, in a Facebook post on August 2 expressed his disappointment over the high new airport tax.

He called the move a “tragedy” and noted that “Malaysia is likely to lose its position as a low-cost airline hub and Kula Lumpur as the low-cost aviation capital of the world for the last 18 years. And that will be a loss to the country and to our hospitality industry.’’

He added that “any collateral damage done by the high airport tax towards the nation’s position as a low-cost air travel hub is solely on the shoulders of Malaysia Airports Holdings.”

“We know it burdens our passengers, but we have no choice. That’s how a monopoly-like Malaysia Airports Holdings works,” Kamarudin complained.

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Malaysia  will introduce an airport departure levy of up to 150 ringgit ($36) for all passengers flying out of Malaysia, effective September 1, 2019, according to an order by Finance Minister Lim Guan Eng published in the government’s gazette on July 31. The amount varies depending on the destination and flight class and will be collected by Malaysia Airports Holdings Bhd, Malaysian news reported. Those flying economy class from Malaysia to other Association of Southeast Asian Nations (ASEAN) member states, they will have to pay a levy of just eight ringgit ($1.92). Those travelling on other flight classes to ASEAN will...

Malaysia Imposes Airport Departure Tax Of Up To $36

Malaysia  will introduce an airport departure levy of up to 150 ringgit ($36) for all passengers flying out of Malaysia, effective September 1, 2019, according to an order by Finance Minister Lim Guan Eng published in the government’s gazette on July 31.

The amount varies depending on the destination and flight class and will be collected by Malaysia Airports Holdings Bhd, Malaysian news reported.

Those flying economy class from Malaysia to other Association of Southeast Asian Nations (ASEAN) member states, they will have to pay a levy of just eight ringgit ($1.92). Those travelling on other flight classes to ASEAN will pay 50 ringgit ($12). 

For flights beyond ASEAN, those travelling on economy class will have to shell out 20 ringgit ($4.80). However, passengers in other flight classes will be charged a whopping 150 ringgit ($36).

Passengers transiting via Malaysia – with a transit period not exceeding 12 hours – will be exempted. Infants below 24 months old are also exempt from the tax.

The levy was proposed last November during the budget announcement. The respective Departure Levy Bill 2019 was passed by parliament on April 10 and is aimed at “encouraging the development of domestic tourism.”

Anyone who tries to avoid or help others dodge the departure levy could face a fine of up to one million ringgit ($240,558), a five-year jail sentence, or both, the order says.

Meanwhile, Kamarudin Meranun, co-founder and executive chairman of discount carrier AirAsia Group, in a Facebook post on August 2 expressed his disappointment over the high new airport tax.

He called the move a “tragedy” and noted that “Malaysia is likely to lose its position as a low-cost airline hub and Kula Lumpur as the low-cost aviation capital of the world for the last 18 years. And that will be a loss to the country and to our hospitality industry.’’

He added that “any collateral damage done by the high airport tax towards the nation’s position as a low-cost air travel hub is solely on the shoulders of Malaysia Airports Holdings.”

“We know it burdens our passengers, but we have no choice. That’s how a monopoly-like Malaysia Airports Holdings works,” Kamarudin complained.

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