Taiwan planning to raise airport service fee starting in September

Taipei, May 25 (CNA) The Ministry of Transportation and Communications (MOTC) is planning to raise the airport service fee in two phases starting in September that will increase the fee from the current NT$500 (US$15.92) to NT$1,000.

In the first phase, the airport service fee will be increased to NT$750, effective Sept. 1, the MOTC said in a statement Monday.

The second phase will be implemented on Sept. 1, 2028 and raise the fee further to NT$1,000, the MOTC said, citing a draft amendment to the Regulations of Airport Service Fee for International Flights Passengers.

The airport service fee, which is paid by departing passengers, has been frozen for 10 years at NT$500, which is lower than the same fee paid in neighboring countries, according to the MOTC.

The increase in the fee will be used mainly to fund infrastructure projects at Taiwan airports, particularly the construction of a third terminal and runway at Taoyuan International Airport, the country's main gateway, the MOTC said.

Currently, 50 percent of the NT$500 airport service fee is allocated to the country's Tourism Development Fund, and the remaining 50 percent to Taoyuan International Airport Corp., the MOTC said, citing the Enforcement Rules of International Airport Park Development Act.

Those regulations, however, will also be revised when the NT$750 fee takes effect in September, with the ratio of the distribution of revenues being changed to 40 percent for the Tourism Development Fund and 60 percent for the airport company, the ministry said.

When the airport service fee is raised to NT$1,000 in 2028, the allocation to the Tourism Development Fund will be lowered to 35 percent, while Taoyuan International Airport Corp. will receive 65 percent, the MOTC said.

The draft amendment proposals were made public earlier Monday to open a period for public comment.

The ministry can give its final approval after the public comment period has ended. The revision does not have to be approved by the Legislature to take effect.