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4PAM is concerned that MAVCOM is becoming a Tax body instead of an Aviation Commission, meant to protect User. Under the new PSC rationalisation regime proposed by MAVCOM, PSC will increase by a whopping 46%, from the current RM 50 to RM 73. “How was the rationalisation done when MAVCOM’s Quality of Service (Airports QoS) framework starts only in 2018”, asked, 4PAM President, Ajit Johl.
MAVCOM must explain to Users, how does the PSC translate into facilities improvement? How do Users get refunds, for journey not performed? If a ticket is bought in January, for travel period in December, who becomes the legal custodian of the PSC and in whose accounts, are the PSC funds kept? “We can’t afford another situation, where passengers found it almost impossible to get refunds from an airline that went bust. There are still many questions that must be clarified by MAVCOM, who has been entrusted with regulating economic and commercial matters related to civil aviation in Malaysia” said, Ajit.
Above this MAVCOM will soon start charging RM 1 for every departing passenger, to finance its operations, since government stopped its funding. “The Management of MAVCOM owes an explanation to the Rakyat, how much initial funding was allocated? and how and where it was spent? It is the Rakyat’s money, they must be held accountable. How did MAVCOM arrive at a stage, where they need to Tax users to fund operations? What has happened to the revenue that it has collected from the Air Service Licence, Air Service Permit, Aerodrome Operator Licence and Ground Handling Licence?” asked Ajit. “The Malaysian Communications and Multimedia Commission, Energy Commission, The Water Commission, The Land Transport Commission and the Securities Commission are regulators that do not depend on consumers for funding, despite offering protection to Users. They impose fees on operators and manage their operations from those fees. Mavcom should look in that direction instead of getting travellers to fork out money to sustain them”, added Ajit.
A recent news article, suggesting that the government may impose a new form of Security Tax, or better known as the Advance Passenger Screening System (APSS) to be imposed on Users. While 4PAM does not discount the need for security, but there must be more transparency in its implementation.
These taxes are over and above the GST and Users can’t always be made to pay for tax. Bearing in mind most of the passengers fly low cost, these taxes will have an impact of travellers.
4PAM appeals to the Minister of Transport and YAB Prime Minister, to suspend the PSC increase, hold the departure tax, and the APSS, until all issues have been clarified. We believe the lack of User representation and open communication between regulators and User association is the main cause of this unwarranted taxes and there must be more representation from User Association within MAVCOM, said Ajit.
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