Airport Tax Collection Mechanism Working Well; Malindo Air's Tax Arrears Will Be Paid: Liow

  • Print

KUALA LUMPUR: Transport Minister Datuk Seri Liow Tiong Lai has rebutted claims that the existing airport tax collection mechanism is flawed.

Although he does not deny there are arrears, he maintains that the mechanism works well.

"We just need to update it from time to time," he said after the opening the Blossom Arts Festival 2017 at Wisma MCA here today.

Liow was responding to Special Affairs Department (Jasa) director-general Datuk Dr Mohd Puad Zarkashi, who yesterday urged Malaysia Airport Holding Berhad (MAHB) to clarify whether Malindo Air has paid its airport tax this year, amounting to RM70 million.

Puad said if the answer is no, then the ministry should take action against the airline.

But Liow said he is confident that Malindo Air would be able to pay its arrears.

When asked on the time frame given for the airline to settle its arrears, Liow said the usual practice is six months.

"Normally, every six months, they have to clear all their debts.

"This is a business decision. But they cannot let it (go unpaid) for a longer period," he added.

Malindo Air operates from the Kuala Lumpur International Airport (KLIA) and the Sultan Abdul Aziz Shah Airport (also known as the Subang Airport).