Bosnia and Herzegovina reinstates aviation tax

NEWS FLASH

The Ministry for Communication and Traffic of Bosnia and Herzegovina has adopted the reintroduction of the unpopular passenger departure tax at the country’s commercial airports, which will come into effect on April 1, 2025. 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 tax amounts to 1.5 euros per each departing passenger, which airlines must pay to the airport, with the funds then directed to the BHDCA. However, the Ministry of Communication and Traffic announced that airports will now receive 30% of the proceeds, up from the previous 3%. "This will allow airports to negotiate differently with airlines, helping us to avoid low cost carriers leaving in protest", the Minister for Communication and Traffic, Edin Forto, said.

In the European Commission’s annual progress report for Bosnia and Herzegovina, published last week, the state of the country’s aviation sector has been heavily criticised. It notes, “No progress was made on civil aviation. The 2009 Law on civil aviation still needs be aligned with the requirements of the European Common Aviation Area Agreement (ECAA). Bosnia and Herzegovina urgently needs to address the chronic lack of adequately trained and qualified staff and the institutional set-up within the Bosnia and Herzegovina Directorate of Civil Aviation (BHDCA), which increases the risks of safety oversight”.