Maldives Civil Court has ordered Go Air, a now bankrupt airline with ceased operations as of May 2023, to pay USD 3.6 million owed to Maldives Inland Revenue Authority (MIRA).
Civil Court ordered Go Air to pay the amount in accordance to the Maldives’ Air Taxes and Fees Act (Act No.: 29/2016); which provides statutory instructions to levy Departure Tax, Airport Service Charge, and Airport Development Fee from from passengers.
For departure tax, under the act, each foreign passenger traveling economy-class is charged with USD 30, while locals traveling through the same class are charged USD 12. Passengers traveling business class and first class are charged USD 60 and USD 90 per person, respectively.
A charge of USD 120 is levied on passengers traveling via private jets.
State collects USD 25 from each economy-class passenger (foreign), and USD 12 from locals as Airport Development Fees. Under this category, passengers traveling via business class and first class, are charged USD 60 and USD 90 per person, respectively. Similar to departure tax, private jet passengers are charged USD 120 per person.
From April 2022 to March 2023; the airline owes Maldives government a collective total of outstanding USD 3.6 million in departure tax, service charge, and airport development fee.
The Civil Court order, made in Go Air’s absentia, highlighted failure of defendant’s compliance to attend court proceedings despite multiple court summoning. The order highlighted, court’s attempts to reach to the airline’s Maldivian branch at the address provided to MIRA; third floor, STO Aifaanu Building.
Court’s attempts to reach out to the airline’s local branch originally registered at M. Narugis, bore no replies as well.
The airline began Maldives route operations in 2018, but ceased movements in 2020 owing to Covid-19 pandemic before resuming post the border reopening. Go Air ceased its flights to Maldives in March 2023, with bankruptcy announced two months later.