Tax hikes at airports likely

Thailand’s Department of Civil Aviation is planning to raise airport taxes at all 28 airports under the department’s supervision.

The department general director, Woradej Hanprasert, said passenger service charges will increase by Bt50 to 100 the first rate increase in six years.

Domestic passengers will pay Bt100 up from Bt50 and international passengers Bt500 up from Bt400.

“The additional revenue from airport tax will go towards the cost of maintenance and improvements at airport,” the director said.

However the proposed increases must be approved by the Cabinet.

The new taxes will apply at the following airports.

Northern airpors: Nan; Phitsanulok; Phrae; Petchabun; Mae Hong Son; Lampang; Pai and Mae Sariang;

Northeast: Khon Kaen; Nakhon Ratchasima; Nakhon Panom; Buri Ram; Roi Et; Loei; Sakon Nakhon; Udon Thani; and Ubon Ratchathani;

West: Tak; Mae Sot; and Hua Hin;

South: Krabi; Phuket; Trang; Nakhon Si Thammarat; Narathiwas; Pattani; Ranong; and Surat Thani.

The Airports of Thailand Pcl also echoed the DCA’s sentiment, saying that the tax increases reflect the real costs facing airports.

It wants to increase airport taxes too at the six airports under its management. Passengers are already highly critical of the AoT”s pricing, which makes its airports some of the most expensive in the region for both shopping or dining. Snacks costing less than Bt100 in up-market shopping malls cost around Bt280 at an airport restaurant.

The state-owned firm, will seek Department of Civil Aviation approval to raise the charge from Bt700 to Bt800 for international passengers and from Bt100 to Bt150 for domestic travellers.

AoT chairman, Sita Divari, said  that if the plan was approved by the DCA, the long sought-after fee hike would take effect at the end of this year and would result in an extra Bt2 billion in incremental revenue.

The cost of serving domestic passengers according to AoT is Bt329 per flight, while for an international passenger the cost is Bt500. How it comes to that calculation is a mystery that AoT officials should explain.

Passenger service charges for international passengers generate revenue of Bt10 billion each year, but losses incurred by the low fee for domestic travellers amount to Bt7 billion, leaving about Bt3 billion in revenue for the AoT, he argued.

The charges were last adjusted 1 February 2007 when the international fee increased from Bt500 to Bt700 and the domestic fee from Bt50 to Bt100.

Sourced: ttrweekly