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Author: Tan KW   |   Latest post: Sat, 17 Aug 2019, 10:23 PM

 

We are cognisant of potential inconsistency in new departure levy, says Mavcom

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KUALA LUMPUR (Nov 22): The Malaysian Aviation Commission (Mavcom) said today it is cognisant of the "potential inconsistency" between the departure levy to be introduced from June 1 next year and the International Civil Aviation Organisation's (ICAO) guidelines and international good practices.

"Mavcom is also conscious of the proposed departure levy and its potential inconsistency with the increase in travelling costs to passengers and further implication to levels of airport charges under the aeronautical charges framework currently being developed by the commission," it added in a statement.

Starting from June 1, 2019, air passengers travelling to Asean countries will have to pay RM20 and RM40 to countries beyond Asean. This was announced by Finance Minister Lim Guan Eng in his Budget 2019 speech on Nov 2.

On Nov 12, Transport Minister Anthony Loke reportedly said that while the proceeds of the passenger service charge are shared between Malaysia Airports Holdings Bhd and the government, the departure levy will go into Putrajaya's coffers entirely.

Mavcom also said it is cognisant that the proposed airport real estate investment trust (Airport REIT) will be designed in a manner that would be beneficial to the aviation industry in Malaysia.

"(Its design will also) highlight matters to be taken into consideration to include the economics of Malaysia's airport operators, cost to consumers, industry structure, the potential need for continuing cross-subsidisation within the airport network and the efficiency of the future airport capital planning process," it added.

However, Mavcom noted that further details are required on the Airport REIT for the aviation regulator to perform a more comprehensive evaluation.

"The commission will provide a more thorough analysis once more information is available," it said.

The Airport REIT was also proposed by the government in Budget 2019.

 

http://www.theedgemarkets.com/article/we-are-cognisant-potential-inconsistency-new-departure-levy-says-mavcom

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