Antigua And Barbuda Levies Airline Ticket Tax

by Amanda Banks, Tax-News.com, London

03 July 2003

Travellers flying into Antigua and Barbuda will be hit by a new US$10 ticket tax known as the Passenger Facility Charge which was introduced this week.

The revenue collected form the new tax is being earmarked towards the expansion and development of the V.C. Bird international Airport and most major carriers have adjusted their ticket prices accordingly.

However, the Airline Association is concerned that the legislation does not allow for an exemption for passengers in transit, that is travellers who fly into Antigua en route to a final destination, and who stay within the country for less than 24 hours.

"We feel that such a situation would strengthen the case for neighbouring islands to get carriers to divert from Antigua & Barbuda. Whereas St. Kitts & Nevis and St. Lucia have a stipulation if tickets are purchased in the country, returning nationals will be exempted from paying the PFC. We feel that this is something that the authorities here should look at," an Airline Association spokesman recently told the Antigua Sun.

The association has written to the Minister of Aviation, Ron Yearwood, stating their concerns in addition to lobbying Commissioner for Inland Revenue William Schouten.

The Passenger Facility Charge is not unique in the Caribbean region: Aruba, Jamaica and St Kitts and Nevis all levy the tax at US$15, and Grenada has a US$20 PFC tax.

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