The Whole House Committee of the People’s Majlis has amended the Airport Taxes and Fees Act to eliminate the airport service charge and replace it with a departure tax.
MP Mohamed Rasheed introduced the proposal to parliament in February of last year. The measure originally proposed eliminating airport service charges after March 31, 2020 and instituting a departure tax on April 1 of that year. However, the Committee on Economic Affairs opted to execute the amendments in 2022.
Currently, a USD 12 airport service tax is levied on Maldivian travelers, while a USD 25 fee is levied on foreign passengers.
Proposed departure tax rates:
- USD 12 for Maldivians travelling in Economy Class
- USD 30 for foreigners travelling in Economy Class
- USD 60 for all passengers travelling in Business Class
- USD 90 for all passengers travelling in First Class
- USD 120 for all passengers travelling in private jets
Changes to the Airport Development Fee (ADF) are also proposed in the bill. The bill stipulates that Maldivians travelling in Economy Class would not be charged anything other than the departure tax, but all other classes will be charged ADF in addition to the departure tax. According to the government, the measures were implemented to produce more revenue for the state through the wealthy classes.
The bill was passed with the votes of 43 lawmakers after while two voted against the bill.