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New Passenger Service Charge
Domestic: New RM11 (up from RM9)
Asean: RM35
International: RM73 (up from RM65 KLIA; RM32 klia2)
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22 September 2016
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Trim the fat and stop raising taxes, says MATTA
KUALA LUMPUR (Sept 22): The government’s plans to boost its coffers by introducing tourism service fees at hotels and increasing passenger service charge (PSC) at airports may discourage tourism, said the Malaysian Association of Tour and Travel Agents (MATTA).
MATTA president Datuk Hamzah Rahmat said in a statement today that an increase in charges would boost government revenue in the near term, but may result in a net loss over the long run.
“The loss of earnings from tourists turned away by new fees and higher charges is likely to surpass the amount collected from guests and passengers. As such, continuing to increase taxes is not sustainable. To stimulate growth, many countries are reducing taxes, as increase will stifle,” he said.
The Edge Financial Daily had, on Sept 2, reported that the tourism and culture ministry planned to impose a tourism services fee of between RM5 and RM30 per room, per night, on anyone who stays at a hotel or serviced apartment — be it a local or foreign tourist — as a means to increase funds to promote Malaysia as a tourism destination.
Today, news reports highlighted, quoting transport minister Datuk Seri Liow Tiong Lai that a new PSC or airport tax, which will see higher rates imposed on air travellers, will be in place from Jan 1 next year.
In his statement, Hamzah pointed out that Malaysia Tourism Promotion Board (Tourism Malaysia) traditionally maintains a large network of offices nationwide and globally, but said such a scale of physical presence is no longer necessary in today’s digital age.
As such, he highlighted that “a lot of fat can be trimmed off”, with funds saved channelled into development as well as advertising and promotions to draw more in more tourists.
“If Tourism Malaysia can do that, it will be a mean and lean organisation and earn the salute of tourism industry players,” he said.
http://www.theedgemarkets.com/en/node/304827
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New airport tax effective Jan 1, 2017: Liow (Updated)
Last updated on 22 September 2016 – 04:50pm
KAJANG: The new Passenger Service Charge (PSC) or “airport tax”, which will see higher rates imposed on air travellers, will be implemented on Jan 1, 2017.
As to details of the new charges, Transport Minister Datuk Seri Liow Tiong Lai said, it would be announced by the Malaysian Aviation Commission (Mavcom) soon.
“Mavcom presented their views to me, and we are looking at the finer details. We also discussed in the cabinet today. The details will be announced by Mavcom.
“We made certain decisions, but all of this is under Mavcom’s purview, so I will leave it to them to make the announcement,” he told reporters after launching the Sekolah Jenis Kebangsaan (C) Bandar Sungai Long, here, today.
theSun, on Wednesday reported that the new rates for PSC had been approved by the Cabinet and is to be implemented at all airports nationwide, in a move deemed to “level the playing field”.
According to aviation sources, the new increased PSC charges would be:
» RM11 for domestic flights, up from RM9 currently;
» RM35 for flights to Asean countries; and
» RM73 for international flights, up from RM65 out of KLIA, and RM32 from klia2 currently.
Despite the increase, Liow maintained that the new charges were still considerably lower when compared to many other countries.
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weehingthong 