IATA objects to Bali tourist tax proposal
Airline group the International Air Transport Association has fired off a missive to Bali’s Governor objecting to plans to levy a tourist tax.
IATA’s regional vice-president for Asia Pacific Conrad Clifford sent a letter to governor I Wayan Koster opposing the tax which may be included in airfares.
The Bali administration wants to impose a $US 10 fee to pay for protecting the environment and its cultural assets.
It has drafted a by-law to bring in the tax and is mulling whether to order airlines to collect the fee via increased airfares or by cash payments on arrival at the airport.
A fee would contravene the Convention on International Civil Aviation which states that ‘no fees, dues or other charges shall be imposed by any contracting state in respect solely of the right of transit over or entry into or exit from its territory," Clifford wrote.
"It is worthy to note that departing international passengers from Denpasar airport in Bali currently pay the passenger service charge in the amount of IDR225,000 related to the provision of passenger and security services."
"Air passengers are already paying for the aviation services they utilise and should not be forced to remit more than their fair share," he added.
IATA believes Bali is unfairly targeting air travellers.
The administration has said it will only charge international arrivals and domestic tourists will be exempt.
Tourist taxes are not unlawful but Bali will likely have to expand it to ferry and cruise port arrivals, possibly including domestic tourists to circumvent the rules.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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