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MVR 1.3 bln collected as ADF and Departure Tax

The government has collected MVR 1.3 billion in Airport Development Fees (ADF) and departure tax.

According to the Maldives Inland Revenue Authority (MIRA)'s statistics, the government collected MVR 653.4 million in departure tax and MVR 668.2 million in ADF as of October this year.

The airport service charge, which was previously charged as airport tax and fee, has now been abolished. The airport service charge was abolished with effect from December 31 last year. The Departure tax, introduced on January 1 this year, now replaces the airport service charge.

Last year, the airport service charges stood at MVR 358.8 million from January to October. ADF received during the same period the previous year was MVR 365.7 million.

In the budget for 2023, Finance Ministry has estimated revenue of MVR 769.2 million from departure tax and MVR 769.2 million from ADF.

ADF is a fee charged from every passenger departing from Velana International Airport, including transit passengers. Only travelers with diplomatic immunity and transit passengers traveling on a "direct transit" flight are exempt from this fee.

The law was amended to change the rate charged as ADF effective January 1 this year. The current rate charges US$12 for domestic passengers and US$30 for foreigners who travel in economy class. Business class passengers are charged US$60, first-class passengers US$90, and private jet passengers US$120. Departure tax is also charged at the same rate.

The airport service charge has been replaced by a departure tax since January 1 this year. This tax is levied on passengers leaving the country from any airport in the Maldives. Persons enjoying diplomatic immunity, transit passengers, and children under the age of two are exempt from this tax.

If any airline or airport operator has charged a passenger an airport development fee or departure tax in excess of the amount prescribed by law and regulations, it must be refunded to the passenger before the due date for submission of airport tax and fee returns. If the passenger has not been paid the money within this period, the funds will have to be paid to MIRA.