Mavcom’s RM1 fee will not be raised


NO FURTHER hike is expected in the RM1 charge imposed by the Malaysian Aviation Commission (Mavcom) which would be incorporated in air fares beginning next year.

Deputy Transport Minister Datuk Ab Aziz Kaprawi (picture) said the RM1 Mavcom charge, including the Goods and Services Tax, will be the ceiling rate that the regulator could pass on to airline passengers.

“RM1 is the maximum rate that can be charged based on the current law,” he told the Dewan Rakyat yesterday, while winding up debates on the Mavcom (Amendment) Bill 2017.

Ab Aziz said if Mavcom intends to increase the charge, it has to be done via a fresh amendment to the law governing the regulator.

“This is the maximum, they will have to come back to this house to amend the law to increase it more than RM1,” he said, responding to further queries by the lawmakers.

The Dewan Rakyat approved the amendment bill yesterday, hence it will now be forwarded to the Dewan Negara for final deliberation.

Mavcom is expected to raise RM30 million in the first year of collection of the charge, as the regulator aims to be financially self-sufficient from next year.

The proceeds would be used to sustain Mavcom’s operational cost, which stood between RM25 million and RM30 million last year.

The government has injected RM90 million into Mavcom’s operations for the first two years of establishment since March 1, 2016.

The RM1 fee for Mavcom would apply on both Malaysians and foreigners leaving the country through airports.