Dubai Airports To Impose New $9.50 Tax To Finance Expansion

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Dubai Airports have announced its plan to collect new tax amounting to $9.50 fee (35 Dirham) per passenger including transit flights and all flights beginning on June 30. The departure tax on travelers will assist finance its planned expansion.

It was the first time in Dubai airports, the busiest airport in the world in terms of international passengers, to ask for levy on passengers, according to Saudi Gazette. Tax is usual for the rest of the airport all across the world, including Germany, Australia, China and the UK. Dubai airports started charging additional tax on March 1. The tax that would be collected would also help Dubai airports' infrastructure.

Dubai International Airport has surpassed London Heathrow as the world's busiest for international passengers, The Guardian reports. In 2015, Dubai International Airport has welcomed 78 million passengers. Due the airport's traffic, the management has planned to improve the airport to serve the travelers better. In February, Dubai airports improved its capacity at its main airport to 90 million passengers. It also opened its Concourse D that costs $1.2 billion.

Part of the development project includes the recently opened Concourse D and renovations to Terminal 1 and 2 at Dubai International Airport. The airport has a planned Dh4.4billion project to enhance the facilities, service and capacity. Another airport in Dubai, the Al-Maktoum International will be welcoming 120 million passengers once its open its gate to the public. Dubai airports' exit tax was approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, The National reported.

Dubai airports' tax would mean that all airlines operating in its airports will pass levy to its passengers. The tax would be passed to Dubai airports, and will be collected by the Dubai Government public treasury. A total of 100 million passengers is estimated to pass through Dubai airports by 2023. Dubai airports have an average traffic of 6.5 million passenegrs every month.

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