Airport News - June 2007

Malta Airport’s Tax Provokes EU Court Decision

Posted by Paul Fiddian on 28/06/2007 - 16:18:34

Airport-int - image

In response to the tax imposed at Malta International Airport, the European Commission has stated that it will take the island nation to court.

According to the European regulatory body, Malta International Airport’s tax is discriminatory in respect of passengers. Accordingly, it has made the decision to formally complain to the European Court of Justice. A statement issued by the Commission was released yesterday, in which it detailed how “air passengers travelling from Malta to other EU member states will benefit from eliminating the discriminatory effects of the airport tax”.

An executive from the European Commission highlights the issue further. He states: “The airport tax is discriminatory as it is only levied on air passengers beginning an international journey from Malta airport, but not levied if the passenger had started the journey outside Malta. The tax therefore puts an unfair burden on residents in Malta, and makes it more difficult for them to receive and provide services in other member states”.

The situation is conflated by the fact that the airport tax does not apply to Malta’s domestic flights, such as those to the neighbouring island of Gozo. In the Commission’s eyes, no such distinction should exist, between domestic flights and alternative, intra-community flights .

Malta International Airport first introduced this tax in August 2005. The European Commission’s court decision follows two previous warnings; the first of which was issued in letter form in July last year. The second – a letter of reasoned opinion – was sent to Malta last December.

Initially levied at Lm20, the Maltese government’s most recent budget had announced, as of June 2007, that this tax was to be cut by 50 per cent.

Source - Airport International's European Correspondent

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