Matta 'no' to departure levy

Selangor: The Government's plan to impose levy on Malaysians travelling abroad will not have a significant positive impact on domestic tourism, said the Malaysian Association of Tour and Travel Agents (Matta)."It (levy) will not have a significant impact on domestic tourism unless travellers have 'extreme budget constraints'," said its President Datuk Tan Kok Liang (pic).

"This is because not all air passengers are tourists. A number of them fly internationally for religious reasons (umrah, haj and others), education, business, medical treatment and to visit families," he said when commenting on the 2019 Budget.

Finance Minister Lim Guan Eng, when unveiling the budget last Friday, said Putrajaya plans to impose a departure levy on all outbound air travellers, starting June 1, next year.

He said the proposed rate will be two-tiered – RM20 for outbound travellers to Asean countries and RM40 for those going to other countries.

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Tan, who opposed Lim's suggestion, argued that for Malaysians who could afford to travel overseas, the departure levy will not stop them from travelling.

He also reminded the Government that majority of countries do not impose such a levy.

"The measure will not bring a positive impact on domestic tourism unless leisure travellers are on an extreme budget.

"Malaysian holiday-makers have their own dream holidays and imposing exit tax will not deter them from overseas trips," Tan said, adding that airport and exit taxes are two different matters.

According to Tan, domestic tourism can be improved by providing healthier tourism fundamentals, including better tourism packages and capping domestic air ticket prices.

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"Air passengers are presently paying service charges. If the exit tax proposal is implemented, it will mean travellers will have to pay an additional tax," he said.

"Let us not forget that airport facilities remain unchanged. The question…will the new tax deter Sabahans not to travel abroad and instead go for domestic trips?" he queried. - Nikko Fabian

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