Maldives collected MVR41.10 million as Airport Development Fee (ADF) during the first month after the fee was introduced.
ADF is collected as a departure tax from passengers departing Velana International Airport (VIA). The fee is collected from expats at a rate of 25 dollars and locals at 12 dollars. According to Maldives Inland Revenue Authority (MIRA)’s statistics, VIA collected USD2.7 million (MVR41.10 million) as Airport Development Fee.
The government, however, had estimated a revenue of MVR575 million as ADF in the state budget for the year.
The bill to impose ADF was initially filed to the parliament with a plan to introduce it at the rate of USD25 ADF for both locals and tourists. However, the government-led legislation to impose ADF was passed after a ruling party lawmaker had proposed an amendment to lower the fee for locals.
The ADF was among a raft of new taxes proposed in the 2017 state budget to fund a USD800 million project. The government had stated that the additional revenue will be used to repay development loans taken by the government.
