Majlis begins debate on USD 25 Airport Development Charge

Debate has begun on the bill to introduce an Airport Development Charge (ADC) of USD 25 from all passengers travelling out of Maldives, submitted to People’s Majlis this Thursday by

Progressive Party of Maldives (PPM) member, Gadhdhoo MP Ahmed Rasheed.

Speaking in a recent press conference, Co-Chair of Economic Council, Ahmed Zuhoor said that the ADC which will be introduced in 2017 to fund some of the cost of the development of Ibrahim Nasir International Airport (INIA) will be applicable to both local and international passengers travelling out of Maldives.

“It will cost approximately USD 1 billion for the airport. With such a huge expense, the benefits will be derived by the people,” said Zuhoor.

He said the government had proposed taking ADC from all passengers, indiscriminately. But that the final decision lay in the hands of the members of People’s Majlis.

“As a rule, it has been decided that the ADC will apply to anyone who uses the airport. But that will come from a specific law. And the decision lies in your hands – who to take it from and who not to take it from. Chair of Economic Council envisions taking it from everyone,” said Zuhoor.

Ministry of Finance and Treasury estimates an income of MVR 565.8 million with the application of ADC in its projected State budget for 2017.

Leader of PPM Parliamentary Group and Chair of Budget Evaluation Committee, Vilimafannu MP Ahmed Nihan Hussain Manik and fellow PPM and Budget Evaluation Committee member, MP Asma Rasheed has previously commented that the ADC will not be applicable to locals.

The ADC will be an addition to the airport service charge of USD 25 from foreigners and USD 12 from locals being taken for use of the airport.