Saudi Arabia set to impose new tax on travellers for building new airport

The aim is to provide funding for airport infrastructure development projects and to enhance airport services

The General Authority of Civil Aviation (GACA) in Saudi Arabia is set to impose taxes for building new airport on domestic passengers which will be implied from January 2020.

Passengers will be charged 42 riyals (Rs1,740) for a round trip, with the fee increasing to 87 riyals when a passenger books a domestic flight at a local international departure terminal, Arab News reported on Sunday.

Airlines will collect the charge from passengers by adding it to the ticket price, then pass on the amount charged by coordinating with airport administration and finance departments.

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However, infants, passengers staying on board and not using airport facilities, members of crew on duty, and members of aircraft registered on the list of airline pilots who have IDs are exempted from the levied taxation.

The funds raised will be used to finance development of the basic infrastructure of the airports and improve services.

Moreover, GACA has decided to review taxation policies once every three years according to the inflation rates.

The story originally appeared on Arab News