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New airport tax violates international standards: Maldives minister

Fathmath Shaahunaz
27 November 2016, MVT 09:57
President’s Office’s minister and chair of its Economic Council, Ahmed Zuhoor speaks at budget review committee meeting at the parliament. PHOTO: NISHAN ALI/MIHAARU
Fathmath Shaahunaz
27 November 2016, MVT 09:57

Imposing differing Airport Development Charge (ADC) of USD 12 and USD 25 on locals and foreigners respectively, who depart from Ibrahim Nasir International Airport (INIA), is a violation of the International Civil Aviation Organisation (ICAO)’s standards, declared the President’s Office’s Minister and its Economic Council chair, Ahmed Zuhoor, late Saturday.

The bill on taxes and fees to be charged from airports in the Maldives was presented by member of ruling Progressive Party of Maldives (PPM) and Gahdhoo MP Ahmed Rasheed. The bill originally proposed to impose an ADC of USD 25 from all passengers that depart from INIA. The parliamentary economic committee had approved the bill without any alterations, sparking a heated debate on the parliament floor against charging ADC from locals. The amendment to slash ADC for locals from USD 25 to USD 12 was proposed by Maafannu Medhu MP Asma Rasheed, which was ultimately approved by the parliament majority.

While some lawmakers of PPM had stated on the parliament floor and to media that the amendment was proposed with the approval of President Abdulla Yameen Abdul Gayoom, the president had refuted the claim on PPM’s parliamentary group Viber group. Sources told Mihaaru that the president had said in the Viber chat that he had not requested lawmakers of his ruling party to decrease ADC from USD 25 to USD 12 from locals, and that the claim had made him irate.

Regarding the issue, Economic Council’s chair Ahmed Zuhoor told Mihaaru that the amount to be charged as ADC must be equal from all passengers. Zuhoor had been an advocate for an ADC of USD 25 from all departing passengers at INIA since the bill was first proposed to the parliament.

“I told all members [of parliament] that contacted me [before the vote] on behalf of the Economic Council that unless equal amounts are charged as ADC, it would be a violation of ICAO’s standards. That’s all we can do, just advise them, isn’t it?’ he said as he heavily criticised the parliament’s decision.

In response to the inquiry about the Airport Service Charge already in effect at INIA, which charges differing amounts of USD 25 and USD 12 from foreigners and locals respectively, Zuhoor said that the service charge is an “internal charge”, hence the varying amounts are of no consequence.

“But there cannot be discrimination in charging ADC. That is an international standard.”

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