A month after he promised to raise the issue of airline taxes at Caricom, Prime Minister Gaston Browne appears to be ruling out any reduction, at least for now.
He said in the case of Antigua & Barbuda, airport taxes are generally hypothecated to service the US$90 -100 million airport loan that was granted by Credit Swiss.
Several studies including by the Caribbean Development Bank, OECS and Caribbean Tourism Organisation recommends a reduction in airport taxes to help facilitate regional travel.
Browne said, the CDB study found that reducing taxes will help increase demand.
“So if we can reduce the price by about 25 percent that may probably increase travel by 10 percent and then we could probably break-even,” Browne told Pointe FM over the weekend.
He hastened to add however, “the problem is whether we have the fiscal space to give up 25 percent of that revenue.”
Browe said “I think in essence what we have to do is hold those takes stable for the time being and within a few years we will be in a better position, especially with a reduced debt, then we can give a reduction in the sense that the reliance on those taxes may not be as great.”
Browne who is also finance minister said he prefers a phased approach to airline taxes reduction.
“We would probably have a phased in system … lets say after the next 24 or 36 months, that we reduce fares by maybe 15 percent and then maybe by another 15 percent,” he said.
But the prime minister added “to cut fares by 25-30 percent in one swoop, I think its going to create financial challenges for all of the airport authorities within the region.”
Government taxes make up a portion of airline tickets.
A group calling for the reduction of these taxes recently sent a petition with 20 thousand signatures to Browne and his Caricom colleagues asking them to reduce the taxes.
In a letter to the group, Browne said he would raise the issue at the next Caricom meeting.
Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]
Promises is a comfort to a fool , we aren’t no fools , let’s get competition and see how fast taxes go down for air travel. Liat is not a one man show , so it has been for years and if we speaking and focusing on regional integration then we need to think competitive, so when these Caricom Leaders defend liat they are defending their Pockets and not the people’s. Then soon you will hear that Liat need 100 million to bail them out again , so where’s the profit??? Give Caribbean people a break and start with 5% cut, which is reasonable to ask for.
Doesn’t common sense say that the very high cost of airfares within the Caribbean is preventing pleasure travel? Why not enable LIAT to survive by encouraging the public to fly within the region by making the taxes affordable. It would be interesting to know the breakdown of the new airport construction costs showing exactly what brought the cost up to US$100million (I think we can be assured that it was NOT the “indentured” labour costs even though we would be charged westernized rates for that). V.C. BiRD airport is not a super-sized sophisticated structure and it is very difficult to come up with a reason, beyond corruption by/with the construction company, for such an exorbitant cost.
Comments are closed.