Brief IDEAS No 13
Potential Deadweight Loss of Departure Levy
Author: Adli Amirullah and Irene van Eldik
The government announced, during the Budget 2019 presentation, the introduction of a new Departure Tax to be levied on all international outbound flights from June 1, 2019. This new departure levy will threaten the position of Malaysia both within ASEAN as well as the wider international aviation and tourism market by raising air ticket prices and potentially creating a deadweight loss for society.