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Departure Tax Gets A New Name As Airlines Get Slugged

The May 10 Federal Budget saw the end of the $25 Departure Tax, this revenue generator being replaced by a $27 ‘passenger movement charge’. The move is a means by which the Government hopes to be able to bury the charge in the cost of a basic international air ticket following criticism that the $25 Departure Tax was one of the highest in the world and widely resented by tourist and business travellers alike.

Coming into effect on January 1, the new charge is expected to raise an additional $5m in 1994/95 and $12m in 95/96, its first full year of implementation. This then takes the total departure tax rake from $111m this year to $141m in 1994/94, an increase of 27%. It is expected to exceed $170m the following year, more than double what it was at the beginning of this decade.

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