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New Travel Tax Casts Wider Net

New Travel TaxAntigua St John's - The new Airport Administration Charge Tax, which had its first reading in the House of Representative on March 5, will cast a wide net when it becomes law following parliamentary approval.

Copies of the proposed bill have not been circulated to all members of the House, but Caribarena.com has secured a copy of the bill that will likely have its second and third readings at the next sitting of the House.

According to the Explanatory Memorandum, the bill "seeks to provide for the direct administration of airport charges through the Antigua and Barbuda Airport Authority in replacement of two previous existing taxes currently administered by the Commissioner of Inland revenue (Passenger Facility Charge) and the Comptroller of Customs (Embarkation Tax)".


A further rationale provided was that the creation of a single unitary charge, directly administered by the Authority, in conjunction with the pre-existing relationship with IATA, allows for a more cost-effective collection process, and also by placing the charge directly on the ticketing process, reduces the imposition on passengers of an additional charge in their departure from Antigua & Barbuda, particularly at a time when funds may already have been exhausted.

It added that the bill is to ensure that the Authority is in a position to effectively manage its funding, and reduces the need for subventions from the central government.

Unlike the two taxes that it replaces, the new Airport Administration Charge casts a wide net, including many who current do not pay either or both the Passenger Facility Tax or the Embarkation tax.

A look at Section 4 of the proposed bill shows that only a small group of people will be exempt. These are:


(a) children under the age of three
(b) positioning air crew
(c) persons taking part in training flights
(d) passengers travelling on domestic flights between Antigua & Barbuda (e) persons traveling on military, scientific, or meteorological flights to whom no ticket has been issued, and (f) persons travelling on diplomatic passports.

The tax of US$37.50 each way will be attached to airline tickets for all other passengers, including pensioners and children 11 years and younger who do not pay the embarkation tax. Children under 11 are also exempt from the Passenger Facility Tax.

When the new law goes into effect, the embarkation (departure) tax will become a thing of the past.


Attachments:
Download this file (ANU Airport Admin Charge.pdf)ANU Airport Admin Charge.pdf[ ]3566 kB
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26 Comments In This Article   

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#26 Pinky » 2012-03-16 22:46

This is a regressive tax that will prove to be detrimental in the long run.
And why aren't seniors excluded from this levy?
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Pinky

RE: New Travel Tax Casts Wider Net

#25 I » 2012-03-16 21:31

The sad thing about all these posts is that the people in power couldn't care less about what is being written. Antigua is the real titanic now, but my family and I will not be going down with the ship.
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I

RE: New Travel Tax Casts Wider Net

#24 lamanex » 2012-03-16 17:59

It's a shame that the people creating these taxes do not have to pay because they all have diplomatic passport. They are making more money than the average traveller yet do not have to pay.
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lamanex

RE: New Travel Tax Casts Wider Net

#23 Morris » 2012-03-16 16:19

Before coming to ANU, prospective visitors will now be asking, does the end justify the means? There is more pain ahead as the country continue to struggle to meet the fiscal requirements from the IMF. Hold on, it is going to be a bumpy ride!
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Morris

Thanks...hmmmmm

#22 Common Cents » 2012-03-16 14:59

I didn't realise that Airports had the authority to levy charges both ways.....thought it was just the departure airport which decided the charges

Thanks Tenman
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Common Cents

Common Cents

#21 tenman » 2012-03-16 13:57

Common Cents its each way: 37.50 to come to Antigua and 37.70 when you leave. The prices will be reflected on your ticket. The article and the law state:
Quote:
The tax of US$37.50 each way (37.50 added to the portion of your ticket regarding arriving in Antigua eg. from JFK to ANU and 37.50 on the portion of your ticket regrading your leaving eg: from ANU to JFK which totals 75.00 USD
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tenman

So Wrong

#20 Lionman » 2012-03-16 13:31

This is truely unfair but we all saw it coming once Antigua started laying in bed with the IMF. They say we sound like Jamaicans now we really going to be like Jamaicans once the IMF is through with us and these government officials don't give one bit. This would restrict people in Antigua to travel and once that happens layoffs of airport personelle will take place. Tourism will be effected tremendously. Antigua and Barbuda is really messing things up for itself especially now we are on a rise with tourism lol. The elderly are really getting the knife dug deeper in their backs with this charge. How can these politicians sleep at nite.
Jah help us.
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Lionman

@Tenman

#19 Common Cents » 2012-03-16 13:24

Tenman I saw your post, I was just trying to figure out if I missed something. I was never good at maths at school.

CURRENTLY the PFC+Departure tax= 43 US (roughly)

The idea is now to combine the two and charge 37.50 US

Wouldn't this make things cheaper?
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Common Cents

IMF in charge

#18 tenman » 2012-03-16 12:17

The mach 2011 memorandum www.imf.org/external/np/loi/2011/atg/031811.pdf of understanding states:

Quote:
14. We will continue to advise IMF staff of developments with respect to the framework agreement with China for a loan to construct a new airport terminal.Accordingly, we agree to provide IMF staff with advance copies of any binding agreements to be signed with respect to the loan, leaving IMF staff adequate time to respond and provide
advice on the proposed contract
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tenman

antiguan seniors 60 and over get stabbed in the back again

#17 jean sieman » 2012-03-16 11:25

Why are antiguan seniors 60 and over not excluded they where before somehow they found more money I don't think so (EXCLUD SENIORS)
J.S.
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jean sieman

OK

#16 Help » 2012-03-16 11:18

Well OK! I guess the Chinese done secure their repayment Plan for the New terminal?
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Help

where will it stop?

#15 fnpsr » 2012-03-16 10:26

Tax baby tax! Pretty soon you will be wondering where have all the tourists gone? This is a direct result of the imposition of the IMF. Antigua is bankrupt and therefore it has to raise revenues to satisfy the IMF.

The sad thing about this is that you are about to kill your Tourism product. When the average person realizes that an airline ticket to get to Antigua is costing them an arm and a leg, they will just go somewhere else.

Tenman is correct. They just raised the tax no too long ago and now they are raising it again under the guise of consolidation and efficiency. Where will it stop? As soon as there is a shortfall in revenue, the tax will go up once again. The sky is the limit.

Pay attention to the persons holding diplomatic passports. These individuals, including your local politicians, who can afford to pay the tax, are exempt. The politicians really know how to take care of themselves.

I wonder if the workers at the airport will now become redundant?

“Let’s fix the little things before we attempt to fix the big things.”
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fnpsr

PFC correction

#14 tenman » 2012-03-16 10:21

The PFC increase to 25 USD was effective 1st day of September, 2008 not Dec 2009

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tenman

PFC

#13 tenman » 2012-03-16 10:18

www.laws.gov.ag/statutaryI/2008/Statutory_Instrument_No_38_2008.pdf



Quote:
1. Short title These Regulations may be cited as the Passenger Facility Charge Regulations, 2008. 2. Amendment of Schedule The Schedule to the Passenger Facility Charge Act 2002, No. 21 of 2002 is amended by the repeal of paragraph (a) and the substitution of the following — “(a) in the case of passenger facility charge US$25.00” 3. Commencement These Regulations comes into force on the 1st day of September, 2008 Made this 25th day of August, 2008.
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tenman

common cents

#12 tenman » 2012-03-16 10:06

Common cents please read the post at 2012-03-16 09:05 since it answers your question

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tenman

De Real Observer

#11 Osbert R. Frederick » 2012-03-16 10:02

This is the same government who complains against the British for the tax they imposed on long haul flioghts. The British must be really laughing at us now. Allthat will happen is that we will see the visitor arrival figures dropping dramatically. This government has lost its way a long time ago. It is really time for them to go and if they don't, they should be pushed.
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Osbert R. Frederick

1 Simple Question:

#10 Common Cents » 2012-03-16 09:58

How much was/is the passenger facility charge?
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Common Cents

H.N.I.C. - new tax is each way

#9 tenman » 2012-03-16 09:56

Quote:
The tax of US$37.50 each way
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tenman

H.N.I.C. - Departure Tax

#8 tenman » 2012-03-16 09:54

www.antiguanice.com/v2/client.php?id=523

Quote:
The departure tax payable by tourists and non Caricom citizens when leaving Antigua is US$28.00 or EC$70.00 and for Antiguan and Caricom citizens this is reduced to EC$50.00 or US$20.00. If you visit another island the day before flying home for example Montserrat the departure tax paid on that journey will be valid for your journey home.
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tenman

H.N.I.C.

#7 tenman » 2012-03-16 09:43

H.N.I.C. the PFC is paid on arrival and the DPT on departure. Since the non caricom will see an increase on departure of 37.50 vs 28.00 and an increase on arrival of 37.50 vs 25.00. They will now see a total increase by 22.00 USD or 41 percent

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tenman

tenman

#6 H.N.I.C. » 2012-03-16 09:28

Tenman if ur figures are correct then the taxes have not really increased except for Antiguans. If now non caricom travelers pay $28 DPT and $25 PFC that's $53. the new proposed amount is $37.50. Unless I am missing something.

They will still make more money because more travelers are included in this revised tax act.
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H.N.I.C.

hmm

#5 tenman » 2012-03-16 09:05

It was just a few years ago,Dec 2009, that the airport charges were increased. Here we go again, and all because the government keeps missing its IMF revenue targets. The related charges to come to the island saw a 25.00 USD for Passenger Facility Charge (PFC), its now 37.50 USD (I recall prior to dec 2009 it was 10.00 usd). To leave the island is now 37.50 USD when for CARICOM nationals it used to be 20 USD (50 EC after Dec 2009 and 35.00 EC prior to dec 2009), non caricom it was 28.00 USD and will now be 37.50 USD. The decision makers are not getting the message that the more they seek to get via price increases, the less they will get (diminishing returns). The other, perhaps small question, is how can a bill before parliament use USD and not EC?
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tenman

more tax

#4 Baldhead » 2012-03-16 08:38

After this TAX how can we argue against the UK for the Tax leveled on travel to Antigua.
TAX them coming .Tax them going.
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Baldhead

RUBBISH

#3 BJSMC » 2012-03-16 08:18

more tax and tax and tax u people out to kill antigua people...this looks like a good time to leave my country and migrate to another...poor antigua antigua gone...
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BJSMC

RE: New Travel Tax Casts Wider Net

#2 H.N.I.C. » 2012-03-16 07:55

Can anyone say how much the Passenger Facility Tax is or was?
Just doing the maths, Antiguans traveling trough V.C. Bird Int. Airport will now have to pay just under $200 XCD total for this tax. Departure tax for locals is presently around $35 XCD. Were we really paying $165 in Facilities tax per passenger?
In any case this translates to A LOT of money given the volume of passengers handled on a daily basis. All we ask for is accountability.
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H.N.I.C.

just another day

#1 texan » 2012-03-16 07:42

A 50% increase in the existing tax, as if it is not expensive enough to travel to/from Antigua by air. This country is going to be taxed out of existence......Soon the only people here will be vendors but no one to vend to.
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texan

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