18-3-2024 (KUALA LUMPUR) Transport Minister Anthony Loke clarified that the passenger service charges (PSC) levied on aviation passengers are not considered a tax but rather serve as a revenue stream for airports.
Loke emphasised that the PSC stands as the primary source of revenue for airport operators, essential for the management and development of airports.
“Developing and maintaining an airport entails substantial costs, including bills and wages. Thus, there must be a reliable revenue source for the operators,” Loke stated during a press conference after participating in the signing of new Operating Agreements between Malaysia Airports Holdings Bhd (MAHB) and the government on Monday (March 18).
He underscored that there had been no increase in the PSC rates, clarifying that the recent revision only standardised one component, particularly for travel destinations within the Association of Southeast Asian Nations (ASEAN).
“Previously, ASEAN destinations had a separate category with lower rates, but now they are merged with international destinations. Essentially, this standardisation does not amount to an increase,” Loke explained, highlighting that ASEAN destinations are also considered international.
In response to queries regarding assurances on improved facilities resulting from the PSC, Loke assured that airport operators are held accountable to the standards set by the Malaysian Aviation Commission (Mavcom).
“Mavcom imposes Key Performance Indicators (KPIs) concerning facilities and maintenance. Should they fall short, Mavcom will take action,” Loke asserted, addressing concerns raised following the recent PSC revision announced by Mavcom.
On March 13, Mavcom announced revisions applicable for the First Regulatory Period (RP1), spanning from June 1, 2024, to December 31, 2026.
The revised PSC rates range between RM7 and RM73 for RP1, applicable to passengers departing from and transferring through Malaysia, inclusive of a security charge for airport security services.
Mavcom maintains the domestic departure PSC at RM11 across all airports except Senai International Airport.
For international travel (both ASEAN and beyond), a single international departure PSC of RM73 for KLIA Terminal 1, and RM50 for KLIA Terminal 2 (formerly klia2), and other airports has been unified. Presently, the ASEAN and beyond ASEAN PSCs stand at RM35 and RM73, respectively.
