Travel
Tax
by a staff reporter
The Malta Association of Travel Agents (MATA) has called on the authorities to review the structure of travel taxes imposed locally. In his address to the well-attended annual general meeting, Ian R. Tonna, the association's president, highlighted the fact that these taxes are levied in a discriminate manner. Maltese residents presently pay 300 per cent (Lm15) more than non-residents who pay just Lm5 for using identical services. These taxes are set to increase by a further Lm1 as from l April.
Statistics indicate that some 140,000 Maltese residents travel annually compared to some 1.2 million visitors. This means that 10 per cent of all travellers are paying 25 per cent of the travel taxes. In order for this tax burden to be distributed fairly and equally across the board, the MATA is calling on the authorities to reduce the residents' travel taxes by Lm9 and balance this by an increase on non-residents' taxes of just Lm1.
The net result to the government's coffers would be no change, except for the fact that Lm1.2m would now be generated in foreign currency rather than from local circulation.
The association also believes that the law regulating these taxes should also be reviewed to allow a refund in the event that the consumer does not use the ticket. Presently, the taxes are paid for upon the issuance of travel documents, but they are not refundable in case of cancellation.
Furthermore, in the event that new documents are issued due to a change in travel plans, the tax would be payable again. The association said in a statement that airlines should also show transparency in their advertising of promotional fares. If advertising prices exclude taxes, travel agents are required to specify that the taxes are not included.
The association is questioning why airlines are not bound by the same requirements. Mr Tonna remarked that following the recent "sensational" advertising stint by airlines promoting fares to London for Lm65 and Lm70, consumers were shocked to hear that they had to pay an additional 50 per cent in taxes.
The president concluded his address by calling for sustained unity among travel agents. Collectively, he said, travel agents will be better positioned to handle the challenges of the market, and with
the right approach will emerge stronger, consolidating their role as travel consultants.
_________________________________________________________________________________________________
Malta-EU Information Centre
http://www.mic.org.mt/EUINFO/sector/sections/fse_travel_agents.htm
Departure taxes are not regulated by the EU. It is up to each individual government to decide on departure taxes imposed upon departure of a passenger from that particular country. In Malta we levy a departure and so do other countries. But EU law does state that you cannot impose a departure tax that discriminates between one destination and another in the EU, although of course, you can discriminate between an EU destination and a non-EU destination. We have seen this in Britain which, until recently, applied a higher departure tax for British tourists coming to non-EU countries, including Malta, than for British tourists going to other Mediterranean destinations which are in the EU and compete with us, such as Spain or Greece. However, since November 2002 this discrimination has been removed in view of Malta’s accession to the EU. It would, in any case, have had to be removed by membership.
____________________________________________________________________________________
Unions in Malta attack new air tax
AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD
http://www.findarticles.com/p/articles/mi_m0CWU/is_2004_Dec_1/ai_n7585166#continue
Four Maltese airline unions have picketed the island's government over a new MTL10 departure tax hike on air travel announced in its budget speech in mid-November 2004.
The Airline Pilots' Association, General Workers' Union, the Union of Cabin Crew and the Association of Airline Engineers presented Malta's Prime Minister Lawrence Gonzi with a letter warning that the new tax would undermine Air Malta and force passengers to pay a total of MTL27.42 in taxes and charges - the highest in the European Union.
A spokesperson for the Airline Pilots' Association said that unions are already making sacrifices to help Air Malta recover and that the new tax will become an extra burden discouraging Maltese people to use air transport. Travel agents have also criticised the tax, calling it uncompetitive and a threat to low-cost airlines, reports the Times of Malta.
