Published on : Wednesday, March 30, 2016
In order to help finance expansion, the emirate of Dubai announced today (March 30) that it was introducing a tax on travellers. The announcement comes even as Gulf governments grapple with plummeting revenues.
It is the first time Dubai has announced a passenger tax.
According to a statement carried by WAM state news agency, the 35-dirham ($9.50) fee will apply to all passengers, including those transiting in Dubai, on all flights from June 30.
The receipts of the new tax will be channelled into funding the expansion of Dubai airports, the statement said.
Dubai airport is the world’s busiest airport with more than 78 million passengers passing through the airport in 2015.
Dubai has a smaller second airport, Al-Maktoum International, which opened in 2013 and will receive 120 million passengers a year once completed.
Although part of the oil-rich United Arab Emirates, Dubai has dwindling oil wealth.
Further with a sharp drop in oil revenues since crude prices nosedived, the whole region is struggling to cope with the losses.
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