Transportation Ministry to Scrap Airport Tax

TEMPO.CO, Jakarta - The Transportation Ministry planned to immediately provide a stimulus for the aviation industry in order to support the sustainability of airlines during the Covid-19 pandemic. This incentive includes the exemption of passenger service charge (PSC) or also known as airport tax.

“We have programmed the exemption of the PSC,” said the ministry’s Director General of Aviation, Novie Riyanto, in a webinar on Thursday, September 17, 2020.

So far, the PSC was charged to passengers as it was included in the ticket prices. In general, the fee for each airport depends on the region.

In addition, Novie said that the ministry is mulling to relax landing fees and flight calibration service fees. “These can be covered with the non-tax state revenue (PNBP), either from rupiah sources or PNBP that we receive,” he said.

Novie asserted that the government must balance various industrial burdens so that the impact of the pandemic could be suppressed immediately. “And most importantly, we convince the public that air transportation is safe,” he added.

As of September, Novie mentioned that the load factor or passenger occupancy level had started to increase. Each airline reported passenger movements at more than 50 percent, much higher than that of during the first volume of large-scale social restrictions (PSBB) which was implemented in April to early June.

Novie believed that the movement of air transport passengers would gradually recover. “All operators comply with the rules issued by the Covid-19 mitigation task force and the Transportation Ministry,” he concluded.

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FRANCISCA CHRISTY ROSANA