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UAE Airports Introduce Exit Tax

by Lorys Charalambous, Tax-News.com, Cyprus

07 April 2016


Airports in the United Arab Emirates (UAE) have begun to introduce exit taxes.

Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Dubai Executive Council, has approved Executive Council Resolution No (8) of 2016, pursuant to which passengers leaving any Dubai airport, including transit passengers, will be subject to a AED35 (USD9.5) tax.

According to a statement issued by the Government of Dubai Media Office, the Resolution exempts passengers below two years of age and cabin crew from paying the fee, in addition to transit passengers whose arrival and departure flight number is the same.

Airlines operating in Dubai airports are tasked with collecting the fee while issuing tickets, whether in the UAE or outside the country, effective March 1, 2016, for flights departing Dubai's airports after June 30, 2016. The collected fees will be transferred to Dubai Airports, and subsequently to the Dubai Government public treasury.

The Resolution aims to improve Dubai's airport infrastructure and boost its capacity, which is set to reach 100 million passengers by 2023, by supporting expansion projects such as Concourse D at Dubai International Airport, the expansion of Terminal 2, and the renovation of Terminal 1.

The emirate of Sharjah also plans to levy a AED35 charge on passengers leaving the Sharjah International Airport, according to the Emirates News Agency. The same exemptions apply as under Dubai's departure tax.

The UAE and other Gulf Cooperation Council countries have been exploring ways of diversifying their revenue streams away from oil.

TAGS: United Arab Emirates | tax | Sharjah | fees | travel and tourism | tax rates | tax reform | exit tax | Gulf Cooperation Council | Dubai

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