Govt abandoned plan for $15 departure tax

A proposal to charge passengers leaving New Zealand a $15 government departure tax has been abandoned.

Documents released to the Otago Daily Times under the Official Information Act reveal the Ministry of Tourism proposed a departure tax of $15 be introduced as early as June 1 this year.

Under the proposal, a $15 departure tax would be levied on all departures from New Zealand on airlines and passenger ships, excluding airline crew, infants, and diplomatic and military personnel.

The tax could raise an estimated $60 million per annum, with revenue going towards tourism marketing and infrastructure initiatives.

Possible "priority" projects mooted include the national cycleway, a national convention centre and a new cruise ship terminal for Auckland.

The report recommended the tax be levied on ticket sales and collected by airlines and shipping companies at the point of sale.

The introduction of a departure tax would bring New Zealand in line with other countries.

Last year, the Australian departure tax increased to NZ$58 overall.

Some government departments were consulted during the preparation of the report.

Treasury said the tax would be an "inefficient form of revenue collection" and the Ministry or Transport noted it could affect the use of international air travel.

The issue of a government departure tax was first discussed with the Minister of Tourism, Prime Minister John Key, in late 2008, a Ministry of Tourism spokesman said.

Despite a recommendation from the ministry to introduce legislation under urgency on Budget night to capitalise on peak visitor season during summer, Mr Key decided not to proceed with the proposal.

"Upon reviewing the pros and cons of the proposal, the Prime Minister made a decision not to proceed," he said.

A spokeswoman for the Prime Minister said a departure tax was no longer being considered.

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