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Loke says KLIA service charges among Asean’s cheapest, quelling tourism fears | Scoop
Transport Minister Anthony Loke has moved to assuage concerns that the revised passenger service charge for both KLIA terminals would deter tourism into Malaysia. – Muharram Kasim/Scoop pic, March 15, 2024
News

Loke says KLIA service charges among Asean’s cheapest, quelling tourism fears

PSC has been revised to aid aviation sector’s post-Covid-19 recovery

Main Author Image
Adam Ayzzat
Updated
8:53 PM MYT

 

PUTRAJAYA – Transport Minister Anthony Loke has downplayed the implications of the revised passenger service charge (PSC) for both Kuala Lumpur International Airport (KLIA) terminals.

On whether the revised PSC could be a deterrent for international tourists who could opt for other nations in Southeast Asia, he said the fee was one of the lowest in the region.

“The PSC in KLIA is one of the cheapest in Asean,” he briefly told reporters at the Le Meridien hotel in Putrajaya today.

Days ago, the Malaysian Aviation Commission announced that international flights from KLIA 1 would be subject to RM73 in PSC per flight.

Meanwhile, KLIA 2 and other international airports here would impose a PSC of RM50.

The rates, effective June 1 this year to December 31, 2026, aim to support the aviation sector’s recovery following the Covid-19 pandemic.

In contrast, Singapore’s Changi Airport imposes a passenger service-and-security fee of S$43.40 (RM152.65) on flights departing from the airport, while transit flights are subject to a S$6 (RM21.10) fee. 

Beginning April 1 this year, Airports of Thailand will adjust its PSC from 700 baht (RM91.76) to 730 baht (RM95.70) for international passengers. 

Meanwhile, responding to questions about the progress of discussions between his ministry and the Finance Ministry over the implementation of the sales and service tax (SST) on air tickets, Loke said to await the MoF’s decision. 

While the SST also applies to flight tickets, the discussion was to determine whether domestic flights could enjoy a maintained 6% service tax. 

The revision of service tax from 6% to 8% on certain services was effective on March 1. 

The government has assured that the change will not lead to an economic shock, as essentials such as food and telecommunications services will not be affected. – March 15, 2024

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