Travel agents call for review of travel tax structure

by a staff reporter

The Malta Association of Travel Agents (MATA) has called on the authorities to review the structure of travel taxes imposed locally. In his address to the well-attended annual general meeting, Ian R. Tonna, the association's president, highlighted the fact that these taxes are levied in a discriminate manner. Maltese residents presently pay 300 per cent (Lm15) more than non-residents who pay just Lm5 for using identical services. These taxes are set to increase by a further Lm1 as from l April.

Statistics indicate that some 140,000 Maltese residents travel annually compared to some 1.2 million visitors. This means that 10 per cent of all travellers are paying 25 per cent of the travel taxes. In order for this tax burden to be distributed fairly and equally across the board, the MATA is calling on the authorities to reduce the residents' travel taxes by Lm9 and balance this by an increase on non-residents' taxes of just Lm1.

The net result to the government's coffers would be no change, except for the fact that Lm1.2m would now be generated in foreign currency rather than from local

circulation.

The association also believes that the law regulating these taxes should also be reviewed to allow a refund in the event that the consumer does not use the ticket. Presently, the taxes are paid for upon the issuance of travel documents, but they are not refundable in case of cancellation.

Furthermore, in the event that new documents are issued due to a change in travel plans, the tax would be payable again. The association said in a statement that airlines should also show transparency in their advertising of promotional fares. If advertising prices exclude taxes, travel agents are required to specify that the taxes are not included.

The association is questioning why airlines are not bound by the same requirements. Mr Tonna remarked that following the recent "sensational" advertising stint by airlines promoting fares to London for Lm65 and Lm70, consumers were shocked to hear that they had to pay an additional 50 per cent in taxes.

The president concluded his address by calling for sustained unity among travel agents. Collectively, he said, travel agents will be better positioned to handle the challenges of the market, and with

the right approach will emerge stronger, consolidating their role as travel consultants.