New airport fees and ‘congestion tax’ among revenue-raising measures for 2017

A US$25 airport development charge, a “congestion tax” and increased import duties for tobacco and fizzy drinks are among a raft of revenue-raising measures proposed in the 2017 state budget

08 Nov 2016, 9:00 AM
A US$25 airport development charge, a “congestion tax” and increased import duties for tobacco and fizzy drinks are among a raft of revenue-raising measures proposed in the 2017 state budget.
Finance Minister Ahmed Munawar announced the new taxes in his budget speech to the parliament this morning. The government expects to raise MVR2 billion (US$130 million) in additional revenue.

MVR565.8 million from airport development charge

MVR500 million from land sales for economic purposes under the government’s home ownership policy

MVR500 million as acquisition fees from Special Economic Zones

MVR209 million from hiking import duties for tobacco and fizzy drinks

MVR261 million from a congestion charge to reduce the number of vehicles in Malé

MVR12 million from selling licenses for taxi and pickups

US$25 airport service charge is currently levied on departing foreign passengers.

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