Airline reps consider leaving tax collection to Government
Published:Monday | June 6, 2011 | 12:00 AM
Janet Silvera, Senior Gleaner Writer
WESTERN BUREAU:
The Board of Airline Representatives of Jamaica (BARJ) is exploring the option of cancelling the collection of all fees/taxes on tickets in relation to Jamaica, as a result of proposed increases to taxes and fees for airline passengers.
The decision would affect passengers departing both the Norman Manley and Sangster international airports.
In the past the Jamaican Government has collected its own fees, and may be forced to return to those days as airlines shed the taxes, separating the tariffs from the actual cost of flying with a carrier.
The group, headed by Continental Airline's Tomlin Scarlett, has written to Tourism Minister Edmund Bartlett, stating its objection to the US$10 increase by the Tourism Enhancement Fund (TEF) and the US$8 for the Jamaica Civil Aviation Authority. A number of other fees are also in the making, The Gleaner understands.
Prime Minister Bruce Golding, Finance Minister Audley Shaw and Minister of Transport and Works Mike Henry were among the persons copied.
"We are of the view that the increase in the TEF is discriminatory and other strategies could be explored to achieve the same objective," stated the BARJ chairman in the letter to Bartlett. "Whilst we acknowledge that it's the prerogative of the Government to make decisions as is relates to imposing fees and taxes, we would like to strongly oppose these increases as we cannot look at it in isolation to the other fees that have already been approved and proposed."
hard to accept
Efforts to get a further comment from Scarlett proved futile, but The Gleaner has obtained a copy his letter to Bartlett.
"... the increase is substantial and could have an impact on the traffic that flows into Jamaica," stated the BARJ chairman, adding that it was very difficult to accept the position taken by Jamaica and Caricom as it relates to the air passenger duty (APD) from Britain and the position now taken by the Government on the tax increase.
The organisation is proposing a meeting for 10:30 a.m., June 17, at which its International Air Transport Association (IATA) representative has agreed to attend.
In its call, IATA's assistant director, members and government services, Cyriel Kronenburg, said Jamaica already has difficulty with price competitiveness of its travel and tourist industry and would be foolhardy to take this route at this time.
Kronenburg warned that perhaps the most compelling argument against increasing an already heavy burden of taxes on aviation passengers could be found in comparing the gross revenue of tickets sold for Jamaica with the Americas region.
"Gross revenue growth from sales in the region far outpaced the growth in actual tickets sold, indicating a healthy growth in the industry. However, when we look at Jamaica, gross revenue of sales has decreased by double digits over the same period, the effect of added taxes and fees in a market with limited price flexibility, tax added to all other fees and taxes on a ticket for Jamaican passengers," said the IATA official.
Outlining the taxes and fees that their passengers are now expected to pay, the BARJ listed:
Current -
US $48.50 (Grand total)
Approved/proposed (To be implemented):
US$10.00: TEF
US $8.00: JCAA
US $5.00: NMIA
Total: US$23.00Grand total: US$71.50