Bosnia and Herzegovina to reintroduce aviation tax

NEWS FLASH

Bosnia and Herzegovina is poised to reintroduce the passenger departure tax at the country’s commercial airports from next year, which will increase costs for airlines. Imposed by the Bosnia and Herzegovina Directorate of Civil Aviation (BHDCA), the tax, which has only ever been fully enforced for carriers operating out of Sarajevo Airport but is supposed to be applied at all of the country’s commercial airports, has been seen as a deterrent for airlines, especially low cost carriers. The tax was suspended for a year in order to boost the country’s connectivity. However, the BHDCA has said the policy has resulted in a “dramatic drop in income” and poses a threat to the Directorate's operations. The departure tax amounts to 1.5 euros per passenger. Last year Ryanair discontinued operations out of Tuzla when the airport was pressured to start applying the tax. The Ministry for Communication and Traffic of Bosnia and Herzegovina will initiate procedures for the reintroduction of the passenger tax at the next Council of Ministers meeting.