Airlines to collect RM1 Mavcom fee, Dewan Rakyat told

BY YISWAREE PALANSAMY
Airlines will now be tasked with collecting the proposed RM1 fee on behalf of the Malaysian Aviation Commission (Mavcom), deputy transport minister Datuk Abdul Aziz Kaprawi said today. — AFP pic

KUALA LUMPUR, Oct 23 — Airlines will now be tasked with collecting the proposed RM1 fee on behalf of the Malaysian Aviation Commission (Mavcom), deputy transport minister Datuk Ab Aziz Kaprawi said today.

In his winding-up speech on the Malaysian Aviation Commission (Amendment) Bill 2017 during its second reading today, Aziz Kaprawi told the Dewan Rakyat that the Mavcom regulatory charge will be imposed at a maximum of RM1, including the Goods and Services Tax (GST).

“It would match Mavcom’s operational cost, which was between RM25 million and RM30 million last year,” he said, adding that Mavcom is also projected to raise RM30 million in funds in its first collection year.

“The regulatory charge is only justified to be imposed on passengers, owing to the services rendered by Mavcom to them, which includes complaints management and consumer awareness activities which need to be conducted from time to time,” said Aziz Kaprawi.

The Mavcom fee would apply to both Malaysians and foreigners leaving the country through airports.

Under the said bill, Mavcom can also impose a maximum penalty of RM1 million, against individuals, for failing to observe its guidelines.

Companies which fail to follow the imposed guidelines would also be fined a maximum of 5 per cent of their annual revenue, from their previous financial year.

The commission can also impose a maximum of RM200,000 fine on first-time defaulters, who impose arbitrary fees and charges, while repeat offenders risk a penalty 10 times larger than that imposed on first-time offenders.

Mavcom is the authority which regulates economic and commercial matters related to civil aviation in the country. It is reported to be in the midst of introducing a set of regulations to help Putrajaya map the future of Malaysia’s aviation industry.

The body will also allocate and manage air traffic rights, provide a mechanism to resolve disputes between industry players, monitor slot allocation for airlines and airport operators and be involved in consumer protection.