The government has proposed an amendment to the Airport Taxes and Fees Act to raise both the airport development fee and the departure tax. PNC MP Asadullah Shihab introduced the amendment to the Airport Taxes and Fees Act during Monday’s Parliament sitting.
According to the proposed changes, the fees charged for local economy class passengers will remain unchanged at the current $12. However, the fee charged on foreigners traveling in economy class will be increased from US$30 to US$50. The amendment also proposes to charge $120 for both local and foreign business class passengers, doubling the current fee of US$60. It also proposes to charge $240 for all first class passengers, up from the US90 currently charged.
Private jet passengers are currently charged US$120. The proposed amendment seeks to increase this fee to US$480.
According to the bill, the departure tax and airport development fee will be charged at the same rates. The airport development fee charged by the government is deposited into the Sovereign Development Fund set up by the government to facilitate loan repayment, while the departure tax adds to the state reserves.
The government aims to generate an additional MVR 1.5 billion in revenue by increasing the airport development fee and departure tax. According to the bill, if the amendment is passed, the increase will come into effect in December this year.
