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Loke to propose retaining 6% service tax for domestic flights | Scoop

04032024 - Majlis Pelancaran Inisiatif Penerbangan Tambang Tetap Hari Raya Aidilfitri di AirAsia RedQ KLIA - AZIM RAHMAN — Following the recent increase in the service tax rate to 8% on March 1, which applies to air tickets, Transport Minister Anthony Loke proposes keeping the service tax rate at 6% for domestic flight tickets to ensure affordability for travellers. – Azim Rahman/Scoop pic, March 4, 2024

Loke to propose retaining 6% service tax for domestic flights

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Maithilli Kalaiselvan

Updated 4 March, 2024

4 March, 2024

3:55 PM MYT

SEPANG – The Transport Ministry will propose that the service tax be kept at 6% for domestic flight tickets, minister Anthony Loke said.

“As service tax is applicable to air tickets, I will discuss with the Finance Ministry about maintaining the rate at 6% for domestic travel,” he said after an event at the AirAsia headquarters here today.

He was asked if the newly implemented 8% service tax applied to all air tickets.

On March 1, the service tax was increased by two percentage points to 8% and now applies to a wide range of services, with the exception of those considered basic for consumers, such as food and beverage, telecommunications, water supply, and electricity usage of less than RM220 per month.

Loke, earlier today, launched promotional airfares of RM348 for a one-way economy class flight from Kuala Lumpur and Johor Bahru to Sabah, and RM298 for flights to Sarawak. – March 4, 2024

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