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New Tax Planned On Travel

New Tax Planned On TravelAntigua St John's - When the House of Representatives meets on Monday, a number of new pieces of legislation will be introduced, including one that will tax airline tickets for people using the VC Bird International Airport.

This comes via a new bill that will have its first reading during the session. The Airport Administration Charge Act, 2012, is listed on Monday’s Order Paper.

No other information was provided, and a number of parliamentarians, when contacted by Caribarena.com, said they had not received any details about the measure.

However, Caribarena.com was reliably informed that the government has already sent circulars to several airlines about the new tax measure.

A reliable source said the new tax will replace the departure tax, and will be collected by the airlines on behalf of the government.

An airline official said his company was told that the measure would take effect in early April, although the bill is only now going to Parliament for its first reading.


Other measures listed for a first reading are the Merchant Shipping Amendment Act, 2012, the Office of National Drug and Money Laundering Control Policy Amendment Act, 2012, and the Patent Act, 2012.

Debate will also take place on the Defense Act, 2012, the Bill of Exchange Amendment Act, the Cruise Passenger Amendment Act, and the Fiscal Incentives Repeal Act.


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@ Frustrated - Understand The Bretton Woods Bandits' Modus Vivendi & Operandi.

#35 John French II » 2012-03-06 00:20

Notes From A Native Son Of The Rock. Antigua & Barbuda's Fiscal Policy is being developed by the IMF who work out of the A&B PM's Office. In Antiguan langauge "Ah Dem Run Tings!" GOAB is the implementer. It must do their bidding if it wishes to get the standby loans to run Government and to pay the staff. Such are the simple facts. I appreciate yours and the pains which the "so called middle-class", of which none exists in Antigua & Barbuda and quite frankly in many parts of the world, and "the poor and 'Wretched of the Earth' are experiencing. We are being taken on the biggest Scam, since Noah built the Arch, to keep the 1.0% living in the lifestyle to which they have become accustomed and see as their divine right. You will be rolling out the Red Carpet for Elizabeth's Son and Wife, whom you know not and who will tell you as the North Atlantic Buccaneers & Pirates' Apologists, they owe you not a penny for the Past. Move On! Pay us a Little Homage! Without Us as your Head of State, You would be a Zero. Have Mercy! Please Learn & Understand the IMF. Read about Jamaica's Experience which is still unfolding. Ask Kimba to play clips of Manley. Respect.
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John French II

No brain no creativity

#34 Frustrated » 2012-03-05 23:55

We have discus this taxation issue before and yet the people in charge are hell bend to tax this country out of existant. They have no creativity how to raise money and grew the economy. Yet when England introduces a passengers tax they screamed and protested. And now they are doing the very same thing. This tax is a economy killer. Tourism is our main Foureign Exchange Earner. And the airport has not been upgraded lately to justify any new tax. Or is this in anticipation of the new airport to come.
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Frustrated

@ All Taxed Out - Duh! Part 1

#33 John French II » 2012-03-05 23:51

Notes From A Native Son Of The Rock. You have got it wrong. You must give the GAOB its Rightful Due. t is the other way around. Because GOAB collects the Departure Tax at the point of Departure whereas the Other Governments cowardly hide behind the Airlines, it appears that GOAB and in particular LIAT are overcharging. Ofcourse now that they intend to do as most jurisdictions do, they will pay a heavy Marketing price. Entered the Deception Game Too Late. Folks just as you did will see this as an increase, which is in essence a 'flow through" of the existing Departure Tax which is less than most jurisdictions with the varios discounts for Caricom travellers and above all Antiguan & Barbudan Seniors who pay zero. LIAT beeing headquarteered in ANU has its Strengths & Weaknesses. Give thanks to the IMF - the purveyors of Structural Adjustment and Elimination of Government Subsidies and Social Benefits to Citizens. Hopefully this arrives before your Part 2. Respect.
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John French II

Duh! part 1

#32 All taxed out! » 2012-03-05 21:57

Let's look at a flight to Antigua from St. Lucia for a weekend. Departing St. Lucia, arriving into Antigua - airfare of $251.37US (taxes: $117.37US). Departing Antigua, returning to St. Lucia - airfare of $69.10US (taxes: $26.10US). So, to come to Antigua from St. Lucia on LIAT, the taxes are 47% of the fare. To visit St. Lucia on LIAT, the taxes are 38% of the fare.

Same time period, visiting Antigua from Barbados. Departing Barbados, arriving into Antigua - airfare of $235.98 (taxes: $98.98US). Departing Antigua, returning to Barbados- airfare of $137.83 (taxes: $38.83US). So, to come to Antigua from Barbados on LIAT, the taxes are 42% of the fare. To visit Barbados from Antigua on LIAT, the taxes are 28% of the fare.

It is very expensive to fly to this island of ours, and mostly because a considerable portion of the fares, represent taxes paid to the Government of Antigua & Barbuda.
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All taxed out!

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT6

#31 John French II » 2012-03-05 20:59

Notes From A Native Son Of The Rock. Here is how the writer sums up Europe's Malaise and Economic Situation which All Antiguans & Barbudans who are concerned with the Well Being Of the People and Nation Of Antgua and Barbuda can sympathise and empathise with: Quote:
Having a job isn't just about earning a living or paying taxes; it's about human dignity and self-worth. The human and social costs of unemployment are well-documented: financial hardship, emotional stress, depression, lethargy, loss of morale and status, shame, sickness and premature death. Then there is the hopelessness that often leads to rising crime, disorder and social unrest.

Friends, Many will remind us that we have no Natural Resources. I simply remind that the EU finds itself in a similar Natural and God-Given Environment. We have a Valuable Human Resource which we must ensure meets it Full Capacity. Suggestions which will place in dire straights and pauperize any of our people who wish to make a contribution to National Development must not be entertained be they from The Bretton Woods Bandits, The North Atlantic Buccaneers and Privateers, OAS, ALBA or The PRoC. One Love!
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John French II

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT5

#30 John French II » 2012-03-05 20:32

Notes From A Native Son Of The Rock. As Human Beings, we have an unequalled capacity to learn. We have in some cases not only learned, but are leaders in various fields of endeavour. So learn we must. Quote:
Fiscal stimulus, on the other hand, works. The US has had 23 consecutive months of private-sector job growth, with 3.7m new jobs created over the past two years thanks to Barack Obama's American Recovery and Reinvestment Act. US unemployment benefit claims are now at a four-year low.
I honestly believed that both of the BLUE Finance Ministers, especially the first who received a PHD in Economics from a leading Canadian University, would understand this:Quote:
The irony is that mass unemployment itself is the biggest barrier to deficit reduction. Basic economics teaches us that the best way to cut borrowing levels is to get people back to work and paying taxes. Or as John Maynard Keynes put it: "Look after unemployment and the budget will look after itself."
Every Citizen Understands that
Quote:
Unlike GDP or inflation, unemployment is the only major economic indicator that measures real human beings, rather than growth or prices.
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John French II

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT4

#29 John French II » 2012-03-05 20:13

Notes From A native Son Of The Rock. Where are the North Atlantic Buccaneers & Pirates Apologists? Quote:
But Europe's political and financial elites – led by austerity junkies such as "Merkozy", the European Central Bank's Mario Draghi and, of course, our very own David Cameron – pretend not to notice. Here on the jobless side of the Atlantic, the only solution to austerity-induced unemployment, it seems, is more austerity. In Brussels, eurozone finance ministers threatened to impose swingeing fines on those member states, such as Spain and the Netherlands, that may miss their budget deficit targets.
Advantage IMF To ANU. Quote:
Fiscal stimulus, on the other hand, works. The US has had 23 consecutive months of private-sector job growth, with 3.7m new jobs created over the past two years thanks to Barack Obama's American Recovery and Reinvestment Act. US unemployment benefit claims are now at a four-year low
Service Break To President Obama.
Can the GOAB, Bureaucrats & "Hangers On" learn anything from the European Disaster or are we in too deep having moved from the Gravy Train's Luxury Compartment to the twigs and leaves of the IMF's NEST.
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John French II

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT3

#28 John French II » 2012-03-05 20:00

Quote:
Notes From A Native Son Of The Rock. There is a spectre haunting Europe – ... mass unemployment. ... the eurozone's unemployment rate had risen to a record high of 10.7% in January. That's 16.9 million people out of work across the 17-nation euro area.
Across the 27-member European Union unemployment is also topping 10% for the first time: a jaw-dropping 24.3 million jobless. The sheer size of the continent's growing army of unemployed workers is difficult to comprehend.
Spain holds the EU record, with unemployment at 23.3%, or 5.3 million people – and rising. "This is the terrible cancer of our society," said Rafael Zornoza Boy, the bishop of Cadiz, last week. Yet prime minister Mariano Rajoy's new (and conservative) government's pleas to give Madrid some leeway on spending cuts fell on deaf ears at Friday's EU summit of fiscal self-flagellists in Brussels. Then there is poor Greece, where EU-imposed cuts have left one in five unemployed and have driven up the suicide rate by 40%. Austerity is, literally, killing Europeans.
Is any of the above being felt and understood in Antigua & Barbuda. Who is saying no to this madness?
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John French II

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT2

#27 John French II » 2012-03-05 19:47

Notes From A Native Son Of The Rock. That there must be someone in the GOAB, Finance and/or Economic development quietly reminding all who have been actively engaged in this IMF Adventure, as the North Atlantic Buccaneers of old saw and referred to their activities and business enterprise of looting Booxtie in these here Caribbean Seas, Remember Captain Morgan and More Recently The IMF in Jamaica.
An Antigua Colleague and Accountant, who works for one of the largest and profitable Multi-National Corporations Worldwide sent me this: Unemplo yment matters more than GDP or inflation | Mehdi Hasan | The Guardian http://www.guardian.co.uk/commentisfree/2012/mar/04/unemployment-matters-more-gdp-inflation to which he penned some comments: Quote:
It is so ironic that the Republicans in the US seek to denigrate President Obama by tainting him with seeking European economic solutions, whereas, unlike the Europeans, he is diametrically opposed to “austerity”. His stymied efforts and modest economic stimuli appear to be moving America away from the dismal economic reality of European austerity as described in the Guardian.
Not So With GOAB.
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John French II

With technology come downsizing

#26 Airline Man » 2012-03-05 19:40

With the GOAB plan to add the tax the the tickets that means all the ladies in the booth which is two or three per shift will need to be redeployed back into customs hope there is space for their sake. We heard what technology did to BEEF.
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Airline Man

@Tenman

#25 Airline Man » 2012-03-05 19:32

Based on the first draft at least thats what I call it that was presented to the airlines there is an increase to Antiguans/Caric om. The existing taxes excluding the 10 percent sales tax for Antiguans is US 20 for departure tax and US 25 for the user fee a total of US 45. The new tax will be Us 75 which is a US 30 increase. The non caricom increase is US 25.
When the airlines collect the taxes they get paid one of two way by a direct billing to the airline or through IATA. The caribbean governments have all or at lease almost all gone through IATA.

Like John French says when they go the route of adding the tax to the ticket it makes the airline look like the bad guy. When I last travelled to St Lucia taxes alone were over US $135.00
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Airline Man

@ Tenman - Even Privateers Understand Damages From Structural Adjustment In The IMF's NEST PT1

#24 John French II » 2012-03-05 19:23

Notes From A Native Son Of The Rock. First all Nationals should visit LIAT's website which is the only travel site that gives you an opportunity to see that all travel from outside ANU have higher TAXES than from ANU, simply because the Other Governments Hide the Departure Tax in the Airfare. Hence LIAT gets tagged as the Bad Guy. Only ANU & BVI do not. You now see the Brixtonian's flight. The existing system even with its warts and poor technology served the GOAB Best. They will now of necessity, employ more technology, reduce staffing and social responsibility which is the direction of the IMF. Governments in these SIDS, notwithstanding "Privateer Speak",have a social obligation to their Citizens.The Private Sector will never provide sufficient jobs. "Nar GU Hapn!" In The Sixties Full Employment by The Economists was 3.5%. It creeped to 5.0% in The Nineties. Now they are suggesting 7.5%. That is in the Developed World. For Poor SIDS It will be trebbled if GOAB continues this Path of Structural Adjustment as designed and implemented by the Bretton Woods Bandits. After listening to the Governor of the ECCB, our path to further economic decline is assured.
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John French II

RE: New Tax Planned On Travel

#23 Cool Ruler » 2012-03-05 17:23

So tenman this will like what applies international? I have to admit am not sure how countries like the USA get the taxes turned over for tickets purchased and will Antigua have similar measures in place.
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Cool Ruler

Cool Ruler

#22 tenman » 2012-03-05 17:03

Cool Ruler the idea now is a bit different, you will pay the tax when you purchase the ticket. This is different from paying the tax when you get to the airport.

John French, I somewhat suspect that there will be no CARCOM rate anymore, that everyone will now be paying the same price. If true this then makes its an increase where at least locals are concerned. Yes its sad when the taxes on LIAT fare are even more than the cost for the ticket itself.

..
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tenman

RE: New Tax Planned On Travel

#21 The Brixtonian » 2012-03-05 16:51

Barbados here I come ...
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The Brixtonian

RE: New Tax Planned On Travel

#20 Cool Ruler » 2012-03-05 15:35

This method of collecting the tax was in place some years ago where the airlines would collect the tax making it more convenient for travelers in that they would not have to go join another line to pay departure taxes. This was changed because it was said at the time, the airlines would collect this tax and not turn it over to the government in a timely manner, with many months elapsing before the treasury sees a dime. So my question is, What will be different this time?
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Cool Ruler

RE: New Tax Planned On Travel

#19 DadliMan » 2012-03-05 14:41

I guess we will have to wait for the actual debate in Parliament to get all of the details. I remember that prior to March, 2004, one of our biggest criticisms of the ALP was that they never brought anything to the public. It was a campaign plank of the UPP, that they would always consult the public prior to going to parliament with any Bill. We campaigned that the UPP would be different, and the Opposition parliamentarian s would no longer receive the proposed Bills on the morning of the debate. All those promises have been thrown out the window.

With all of the available means of communication, there is no excuse for us having to guess the contents of a Bill that will be debated today. Without public consultation, who are the Parliamentarian s representing? If we haven't been consulted, then they are representing themselves, and not us - the general public.
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DadliMan

@ Tenman - On Being Structurally Adjusted By Stealth Living In The IMF's NEST

#18 John French II » 2012-03-05 14:34

Notes From A Native Son Of The Rock. Quote:
Structural adjustment is a term used to describe the policy changes implemented by the International Monetary Fund (IMF) and the World Bank (the Bretton Woods Institutions) in developing countries.
The IMF resides in the PM's Office. Who is providing Funding and Training for a more effective and efficient Tax Regime. "Getting Prices right", The Bretton Woods Bandits' Term, means effectively and efficiently removing services from Government & offloading them to the private sector. That is a major tenet of the IMF. Tenman, as a free marketeer, you know the TAX will go up. Even with the lack of a POS electronic system, the existing system was a social benefit, efficient and could be further improved with IT. Was it effective? It would have if the funds were earmarked for Airport & Infrastructure Services. Review LIAT Fares to and from Helen. You will immediately see why many Governments pass this collection to the Airlines. The People must wake up to the Machinations of GOAB & IMF. Many tout Tourism Improvements in JA. The JA dollar has lost more value this year. Had it not been for the ECCU, where would ANU be?
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John French II

RE: New Tax Planned On Travel

#17 ANTIGUAN WOMAN » 2012-03-05 13:29

Headline should be different,on first glance,one would think its an additional tax,if it will replace the departure tax,then it cant be new. However,lets hope it is actually intended for a replacement and not an addition,like the VAT, which were to replace as they called it Nuisance taxes,but instead turned out to be an addition on what we already had. Knowing this Govt, i will not hold my breath,i will wait to see.
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ANTIGUAN WOMAN

Tax on Travel

#16 Airline Man » 2012-03-05 13:12

On what basis do we (caribbean) challenge the UK and the APD when we continue to add new tax ourselves? Or am I way off base here?
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Airline Man

@DadliMan

#15 Airline Man » 2012-03-05 12:35

My information is the airlines are the ones that stopped the collection at checkin and not the government as it was too time consuming and demanding on the counter staff. When it is collected on the ticket the handling is much different as the reconcilliation can be done by one or two persons on the airline side at least so i am told
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Airline Man

@Objectivity

#14 Airline Man » 2012-03-05 12:29

Don't forget the French and the millions they rake in for flying in their airspace which is alot of space for Guadeloupe and Martinique.
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Airline Man

@Tenman

#13 Steadyj » 2012-03-05 12:29

I agree with you. Having the airline collect the departure tax is more effective and efficient. However, what mechanisms and safeguards will be put in place to ensure that the GOAB is receiving all taxes and fees collected on their behalf? Tourism destination all over the world has attached “stealth fees” on hotel rooms, and rental cars.
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Steadyj

First proposal of tax to Airlines

#12 Airline Man » 2012-03-05 12:23

The first draft of the tax is US $37.50 for leaving Antigua and US $37.50 for arriving in Antigua with is US $75.00 round trip. The departure tax for Antiguans is US $20.00 and the PFC is US $25.00 a total of US $45.00. The difference will be new taxes for airport systems ets...

Like I said first draft.
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Airline Man

@ SMoke

#11 DadliMan » 2012-03-05 12:10

I am sure Everton is very capable of defending himself, but people like you make my skin crawl. Everton is merely reporting on the bills that will be debated in parliament today. What provoked this attack? Should he not report on the happenings in government unless it is to pat the UPP administration on its back and say job well done? When will you UPP sycophants realise that your blind loyalty is more of a detriment than help to the party?
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DadliMan

@ tenman

#10 DadliMan » 2012-03-05 12:00

Quote:
Caribarena what you described is not a tax but a new (better) collection method
- tenman
Better? We are simply moving in circles. Many moons ago, the departure tax used to be collected by airlines. The reason that was changed to what we have today, is that the airlines never turned the collected funds over to the government - much like the hotels do (or fail to do) with the head tax.
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DadliMan

Progressive Move

#9 Objectivity » 2012-03-05 11:40

If I am to understand this tax measure, it will replace the departure tax thus reduce the long queues that are often experienced at the VCBIA. Though a good move I am concerned that the policing of the collection machinery is inadequate and unable to assure maximum collection of these fees. For Example, LIAT owes this government millions in landing and parking fees for many years. What assurance do we have that the taxes will be collected.

Currently Antigua and Barbuda is losing millions by not having access to charges levied by the ECCAA for the use of the navigation equipment while St. Lucia and other OECS countries have significantly benefited. In addition, this nation loses millions per annum by not charging all aircraft that pass through our airspace and use the Nav Aids. Trinidad does this and these charges assist in offsetting the operational expenses of its Airport Authority.

As I said earlier this is a good move however, the government needs people who understand the aviation industry and know best practices that can be bench-marked and implemented in our environment to achieve the best possible results for the VCBIA.
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Objectivity

@ R. S. Baptiste

#8 skyewill » 2012-03-05 10:21

So when a teacher tells the student, "there is no bad question". are they misleading thier students? Journalists ndo not ask question for themselves,n they aske for the general public. I feel it was a ligit question because in the loan agreement it must be mentioned, and there is a good reason for that. What are some of the questions you would have asked?
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skyewill

RE: New Tax Planned On Travel

#7 Spin Doctor » 2012-03-05 10:06

While allowing the airlines to collect the departure tax is indeed an improvement in efficiency the reason for doing so has nothing to do with improving efficiency.

If what I have heard is true and my source has always been reliable in the past on these matters this is just a thinly veiled way of substantially increasing the departure tax!

This government already responsible for imposing crushing taxes on the people of Antigua while at the same time being responsible for the fencing fiasco, the HMB disaster, the Chinese generator debacle and the attempted expropriation of the Stanford estate have now decided to increase taxes yet again by deception.

The irony is this is the same government pointing the finger at the UK and accussing them of unfairly raising taxes on flights to the Caribbean, now we find they are doing exactly the same but in an underhand manner.

This government led by Spencer Baldwin should hang its head in shame!
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Spin Doctor

RE: New Tax Planned On Travel

#6 R. S. Baptiste » 2012-03-05 09:14

Smoke; I have the same question for EB. Heaven help us if he is allowed to run the government media under an ALP government. His lxxx xxxx and or basic xxxx xxxx. My rationale goes back to the news conference about the Chinese Power Plant, when he asked about the funds being borrowed in the “RMB” (renminbi), if he was a good journalist and had done his homework, he would not have embar**ed himself by asking that question….When the ALP borrowed money from china, Lester did not get it in “China Money” (broken glassware), it was the same RMB.
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R. S. Baptiste

RE: New Tax Planned On Travel

#5 BJSMC » 2012-03-05 08:49

MORE TAX AGAIN...REALLY! NO WONDER TOURIST GOING OTHER CARIBBEAN COUNTRIES THAN RATHER COMING ANTIGUA...THIS GOVERNMENT IS A WASTE UPP IS THE WORST GOVERNMENT EVER IN THE HISTORY OR THE "WORLD" HEAVEN HELP US ALL...
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BJSMC

@CaribArena - correct

#4 tenman » 2012-03-05 08:42

Caribarena what you described is not a tax but a new (better) collection method
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tenman

@ sMoke

#3 Colin » 2012-03-05 08:21

Envy and spite corrode the soul.
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Colin

its should be appluaded

#2 tenman » 2012-03-05 08:17

This move should be applauded. Its the method used in most countries and is more efficient than having someone at the airport collecting these moneys. Note since the current method does not accept credit cards, imagine the problems it imposes on tourists who have no cash.
..
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tenman

RE: New Tax Planned On Travel

#1 SMoke » 2012-03-05 03:08

EB, when ALP gets into power I wonder what job you will get for being their media house mouth piece. I hope you are not disappointed.
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SMoke

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