Tag: departure levy
STAR president says the federal government is bound by the constitution to return 40% of the revenue collected from Sabah.
The transport minister says the Cabinet has decided on the matter.
The finance minister addresses concern over borrowing of RM58.1 billion in the first half of this year.
R Kengadharan says any form of tax imposed on those who wish to travel abroad is a violation of the fundamental rights enshrined in the constitution.
But finance ministry says the levy is only for air travel.
The chief minister Shafie Apdal says Putrajaya still has the tendency to do things without consultation.
The rates will depend on the destination and whether or not passengers are flying economy class.
Abdul Karim Rahman Hamzah says at least the tourism tax sees 50% of revenue collection given to individual states.
Its president, Tan Kok Liang, warns that this may affect tourist arrivals and make Malaysia a less competitive destination.
Deputy Finance Minister Amirudin Hamzah says the Cabinet will discuss suggestions to charge passengers according to which class they are flying.
Mita president Uzaidi Udanis says industry players are still in the dark as there is no information on the exact mechanism of implementation.
MAHB group CEO says even with departure levy, airport charges are still among lowest in the region.
Phua Lee Kerk says outsourcing the job will only reduce levels of collection.
The International Air Transport Association says the levy will also decrease the aviation sector’s GDP contribution by up to RM1.7 billion and see the loss of 5,300 jobs.
The association says travel agents and others need time to get used to the mechanism.
The proposed law imposes between RM20 and RM40 on those leaving the country.
They say it will burden pilgrims and those who go overseas to work.
The body representing travel agents says tourist arrivals in neighbouring countries are ahead of Malaysia.
Maybank Kim Eng analyst Mohsin Aziz says government can collect close to RM900 million in departure levy annually.
IDEAS says the new levy of RM20 for those flying to Asean countries and RM40 for other international destinations will affect Malaysia's 'competitive advantage'.
Universiti Kebangsaan Malaysia (UKM) vice-chancellor Noor Azlan Ghazali says the government needs to decide if the objective is to change behaviour or gain revenue.
The airport operator says all aeronautical charges are regulated and are the prerogative of the government.