The Federated Association of Travel and Tourism Agents (FATTA) demanded the Finance Minister, the Competitiveness and Communications Minister and the Attorney General to reconsider the manner in which the Lm10 increase in the passenger service charge is due to be imposed from 1 August.

In a judicial protest filed yesterday, FATTA made reference to legal notice number 60 of 2005, which declares the passenger service charge will be raised from Lm10 to Lm20 for every air travel passenger leaving Malta as from 1 August 2005.

This charge is actually a departure tax, said the association. It explained that the manner in which the rise in tax is being imposed breaches a number of European laws, namely those that regulate fair competition, freedom of service provision and freedom of citizens’ movement.

The fact that the rise is only being imposed on passengers travelling by air breeds unfair competition and discrimination for the sector, giving the cruise liner business an unprecedented advantage, the protest said.

The protest filed yesterday also mentioned that the additional Lm10 in tax will create a barrier to trade, discouraging foreign operators from setting up their business in Malta due to it not being commercially viable.

Since the passenger service charge only applies to air travel, citizens’ freedom of movement is being restricted, FATTA argued. European citizens have the right to travel without obstacles or discrimination and the rise in this tax does not allow that, especially considering air travel is the principal mode of travel used by the Maltese.

In view of this, FATTA demanded the manner in which this rise is to be implemented, as provided in the legal notice, be reviewed and reconsidered.

If this is not done, the association will be holding the Finance Minister, the Competitiveness and Communications Minister and the Attorney General responsible for any damage the association and its member may suffer.