| Departure Tax Increase Now in Effect |
| By L.K. Hewlett |
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Hon. Richard Skerritt |
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Effective Thursday December 15, embarkation tax (departure tax) for nationals leaving St. Kitts doubled 100% going from EC$50 to $100. Minister of Tourism and International Transport Hon. Richard Skerritt confirmed the implementation of the tax hike and highlighted the fact that it would now be included in the airline ticket.
“No more lining up to pay departure tax when leaving St. Kitts; the departure process will now be much easier on travelers,” Senator Skerritt told The Observer on Thursday.
Non-nationals will also pay an increased departure tax to the tune of 72% to pay the same $100 as nationals. The tax for non-nationals was previously EC$58.
The embarkation tax is comprised of an Island Enhancement Fund tax, Environmental Levy, Security Service Charge and Airport Service Charge.
The relevant legislation to effect the increase was amended in April, however the Minister said some “fine-tuning” was needed to give the Minister of Finance the power to effect certain exemptions for national sports teams, diplomats, military aircraft, search and rescue flights, flights within the Federation, and other special groups and individuals.
Skerritt had defended the increase saying it would bring much needed additional revenue while simultaneously minimizing the hassle experienced when leaving St. Kitts. Opposition members said such a marked increase would lead to a decrease in the number of people travelling out of St. Kitts as it presented an extra financial burden on travelers.
“The increased tax is expected to bring in US $2 million annually from 2012 for capital improvements, security modernization, waste management and airlift expansion, which are all critical for future economic growth. The new system of having the tax included in the ticket is designed to streamline customer service at RLB by eliminating the line up at the SCASPA service charge counter,” he contended.
Minister Skerritt acknowledged that with the increase St. Kitts’ RLB airport will have the second highest ticket charges for airport users in the OECS. He told The Observer in a recent interview that it was “not likely” that the increase would negatively affect the nation’s air travel.
“Unfortunately the world of Aviation has changed drastically over the past three years and these increases are necessary for the future survival and competitiveness of RLB,” he pointed out.
“Airport management systems are being improved steadily at the same time and an increase and a simplification of revenue collection are both needed after eight years of no increases and exempting citizens and children from some charges.”
The Tourism Minister had said the fact that taxes and charges on children over 2 years were being increased from EC $10 to $100 for resident kids was unacceptable to government and after further review it was decided to remove all taxes and charges on children below the age of 12.
Skerritt told The Observer in a previous that persons who purchased tickets ahead of December15 for travel beyond that period should have the new tax figure reflected in the cost of the ticket.
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