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Malaysia Delays Increased Passenger Tax

by Mary Swire, Tax-News.com, Hong Kong

15 September 2011


Malaysia Airports has been advised by the Ministry of Transport that increases to the international passenger service charge (IPSC) and aircraft landing and parking charges (ALPC), which the government had previously approved, have been put on hold, pending further review.

Malaysia Airports had announced that the government of Malaysia had approved the new charges, which were gazetted on July 13, in line with the operating agreement signed between the government and Malaysia Airports in February 2009.

From September 15, the IPSC, paid by passengers, was due to increase from MYR51 (USD16.93) to MYR65 at all of Malaysia’s international airports, apart from the low-cost carrier terminal at Kuala Lumpur International Airport and Terminal 2 at Kota Kinabalu International airport (where the charge would have been increased from MYR25 to MYR32).

The aircraft landing charge was due to be increased by 9% in January 2012, followed by two more 9% increases in January 2013, and January 2014. The aircraft parking charge was due to be increased by 18% in January 2012, followed by two more 18% increases in January 2013 and January 2014.

It was also pointed out that, under the present incentive scheme, Malaysia Airports provides free landing for three years for all new routes and additional frequencies operated by the airlines, while parking charges are based on 12 hour blocks, with the initial first three hours free.

TAGS: tax | air passenger duty (APD) | aviation | fees | Malaysia

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