WELLINGTON: The Government’s new border tax has caught both airports and travel agents by surprise.The Government is imposing a levy of around $16 for arriving passengers and around $6 for those departing.
It’s estimated the levy will raise around $100 million a year and will fully meet the costs of passenger border clearance, previously covered by the taxpayer.But the group that represents the country’s 31 airports says it is another tax which will discourage travellers.
“We are very disappointed about this announcement which has come as a complete surprise to the airport sector,” NZ Airports Association chief executive Kevin Ward said.
The tax, when combined with existing Government charges, would add around $36 to a return journey from Australia to New Zealand – potentially making visitors think twice about their trip, he said.
The announcement was a backflip from December 2011 when Prime Minister John Key vigorously opposed the British government’s decision to increase departure tax for air travel from Britain to New Zealand, he said. The Travel Agents Association of New Zealand say it was also blindsided by the tax.
“There is certainly disappointment from the TAANZ point of view that we weren’t consulted about the movement of passengers out of the country,” chief executive Andrew Olsen said.
The Government was double-dipping by charging New Zealand passengers who already pay to protect conservation through other taxes, he said.
The Government says the border clearance levy will be significantly lower than those charged by many of New Zealand’s trading partners and it is fairer on taxpayers.
