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Maldives has not increased taxes imposed on economy class passengers

Minister of Finance Ibrahim Ameer has revealed changes in tax policies for airport passengers will not include increasing taxes for economy class passengers. He made the statement following reports that the recent amendment to the Airport Taxes and Fees Act includes increasing the tax imposed on economy class passengers.

The amendment introduced a departure tax to be levied from all passengers departing from any airport in the Maldives, as per the set fee schedule, but no increase in the tax imposed on economy class passengers. The departure tax will be implemented starting January 1, 2022, and the previously enacted airport service charge will remain in effect until December 31, 2021.

In addition to the departure tax and the airport service charge, the new amendments further stipulate an airport development fee imposed upon all passengers flying internationally via Velana International Airport (VIA).

Economy Class passengers are required to pay a service charge of USD 12 and an airport development fee of USD 12. However, while passengers of all flight classes previously paid a total of USD 24 in taxes, the amendment has imposed a departure tax of USD 60 for foreigners travelling in economy class, USD 120 for all passengers travelling in business class, USD 180 for passengers travelling in first class, and USD 240 for passengers travelling on private jets.

The Government of the Maldives said the changes were brought to generate more revenue for the state through wealthy classes.