PUTRAJAYA is reviewing the departure levy imposed on international air travel, said Prime Minister Dr Mahathir Mohamad.

He said that it was not fair to charge passengers on low-cost carriers the same as those flying on full-service airlines.

“We are studying. Obviously, if they are charging low fares and you charge the passengers the same exit tax for both, it’s not fair. So, we will look into the tax. 

“We are studying the structure of our taxes so that we can be fair to everyone,” he said after visiting AirAsia headquarters in Sepang today. 

The departure levy is to take effect from September 1 for passengers flying out of Malaysia except those on transit.

Those flying to Asean countries are to pay RM8 if they travel in economy class, and RM50 for those in higher classes.

Passengers to non-Asean countries are to pay RM20 if they fly economy, and RM150 for those in other classes.

The Malaysian Insight reported previously that the departure levy is to replace the tourism tax so tourists would not be taxed twice.

Dr Mahathir said that at the moment, the issue is that the departure levy will apply to all (carriers) equally.

“We have to take into consideration the size (carriers) the cost, and the fare into consideration.” – August 16, 2019.