State Budget 2020: first class passengers face USD 90 tax

Ministry of Finance has proposed to charge USD 90 as airport tax on all first class passengers beginning next fiscal year.

The budget proposed by Finance Ministry for 2020 comprised of an increase in Airport Development Tax from business class passengers to increase revenue. All first class passengers travelling abroad are to be charged USD 90 while USD 60 would be charged from business class passengers, according to the proposal included in the budget. All foreigners travelling by economy class would have their tax increased from USD 25 to USD 30, while economy class passengers from Maldives would be charged USD 12.

Following the increase in Airport Development Tax, the ministry has decided to annul the currently imposed Airport Service Charge but instead a departure fee would to be collected from passengers. The Airport Development Tax was introduced in 2017 following the development projects launched to expand Velana International Airport (VIA).

The finance ministry hopes to raise USD 10.3 million for the state expenditure per year via Airport Development Tax.