The government has proposed to increase the Airport Development Fee (ADF). The amendment was proposed to the Airport Taxes and Fees Act.
The State Budget proposed by Ministry of Finance for 2020 also comprised of an increase in ADF from business class passengers to increase revenue. The proposal by Finance Ministry said all first-class passengers travelling abroad are to be charged USD 90, while USD 60 US would be charged from business class passengers. All foreigners travelling by economy class would have their tax increased from USD 25 to USD 30, while economy class passengers from Maldives would be charged USD 12.
Following the increase in Airport Development Tax, the ministry has decided to annul the currently imposed Airport Service Charge but instead a departure fee would to be collected from passengers. The ADF was introduced in 2017 following the development projects launched to expand Velana International Airport (VIA).
Ministry of Finance hopes to raise USD 10.3 million per year via Airport Development Tax.