MP Ahmed Azaan Calls for Departure Tax Relief at Regional Airports Amid Proposed Hike

Hithadhoo Central MP Ahmed Azaan has called on the government to provide relief to travellers using regional airports as the proposed amendment to increase departure tax and airport development fees moves forward in parliament. Azaan’s plea came during a debate on the bill, which aims to boost the state’s revenue by adjusting various taxes, including the departure tax, airport development fees, TGST, and green tax.

The proposed changes, part of the government's strategy to revive the economy, include a significant increase in departure taxes for both domestic and international travelers. Under the new amendment, taxes for travelers departing from Maldives’ airports will see hikes, with fees for economy class passengers rising from $30 to $50, business class passengers from $60 to $120, and first-class passengers from $90 to $240. The most substantial increase is for passengers on private jets, with fees rising from $120 to $480. These changes are set to take effect from December 1, with the government estimating an additional MVR 1.57 billion in revenue for the next fiscal year.

However, MP Azaan highlighted the challenges faced by less developed regions like northern atolls and Addu City, which lack the robust tourism infrastructure of other parts of the country. He emphasized the high cost of domestic flights to these areas, warning that the proposed tax increase could further deter tourists and investors from choosing these destinations.

"Tourism in the northern atolls and Addu City, where I belong, is not as developed. It’s not easy for tourists to visit these areas due to the high cost of domestic flights. Introducing additional taxes could discourage both tourists and investors," Azaan remarked during the debate.

Azaan expressed hope that regional airports would be granted relief when the bill is passed, aligning with the government’s broader vision of promoting regional development. He also stressed the importance of increasing state revenue through taxes to ensure national independence and reduce reliance on foreign loans.

"The best way to secure our future is by raising revenue through taxes, ensuring our financial independence. Otherwise, we will continue to depend on foreign loans, compromising our sovereignty," Azaan added.

The government introduced the bill with the aim of improving the country’s fiscal sustainability and increasing foreign exchange revenues. The additional income from the revised departure taxes and airport fees is expected to contribute significantly to the state’s Sovereign Development Fund.