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Mumbai Airport Gains Fee Increase Approval From Government

by Mary Swire, Tax-News.com, Hong Kong

24 February 2009

India's government has approved the introduction of a new airport development fee (ADF) at the Mumbai airport, it has been revealed.

The fee - which is due for introduction on March 1 - will be levied in two different amounts, with domestic passengers charged INR350 (USD7) per flight and international travelers INR1,000.

It is thought that the additional charges are being levied in an attempt to cover a funding deficit which has arisen from an ongoing development project at the airport. The charges are believed to be a temporary measure, coming to an end in early 2012.

Some other airports in the country are already levying ADF's, with Delhi International Airport the most recent to receive approval for the measure which is helping to recoup an estimated INR18bn shortfall, the result of ongoing modernization work.

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