Malaysia lowered its Passenger Service Charge (PSC) for air travelers to destinations beyond ASEAN, applicable from 1 October, Malaysian Transport Minister Anthony Loke Siew Fook announced on 30 August.

The PSC will be reduced from 73 MYR (17.31 USD) to 50 MYR (11.86 USD) nationwide, with the exception of Kuala Lumpur International Airport – the country's main airport – while it would remain unchanged for local and ASEAN destinations, the minister told a press conference.

Loke added that the reduced tax is expected to encourage the growth of the tourism sector as part of its Visit Malaysia Year 2020 campaign.

The departure levy was announced by the finance minister during the Budget 2019 presentation, as a means to add government revenue and improve the country's fiscal position, Loke said.

But the cabinet has decided to reduce the PSC to balance with the departure levy after hearing people’s views on the increased costs, he said.

The PSC is separate from the departure levy, a tax set to begin on September 1 on travelers taking flights out of Malaysia, with the amount depending on the destination and class of airline flights.

Passengers travelling to countries in the Association of Southeast Asian Nations (ASEAN) and flying economy class will face a departure levy of 8 MYR (1.90 USD). Those flying on all other airline classes to the region will have to pay 50 MYR (11.86 USD).

Passengers travelling out of Malaysia to non-ASEAN countries with economy airfares will have to pay a departure levy of 20 MYR (4.74 USD), while those travelling on non-economy classes to such destinations will be charged 150 MYR (35.57 USD).

(Source: VNA)