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Military insurance tax canceled for domestic flights

Starting on Tuesday, passengers on domestic airlines will no longer be charged military insurance tax on air tickets, the Civil Aeronautics Administration (CAA) announced yesterday.

The administration also said that those who have already bought tickets for flights after Jan. 1 may ask for a refund of the tax at the airline counter when they check in for their flights.

The policy, however, does not apply to flights on overseas airlines, such as Singapore Airlines and Thai Airways, the administration said.

The military insurance tax for domestic flights is NT$40 (US$1.20) per flight and US$1.50 for international flights.

For cargo flights, the military insurance tax is between NT$0.6 and NT$1.6 per kilogram, depending on the destination country.

Cancellation of the tax will reduce the charge for tickets.

Director of the CAA's air transport division, Chen Tien-tsyh (陳天賜) said yesterday that countries around the world started charging military insurance tax after the Sept. 11, 2001 terrorist attacks in the US.

Recently, however, many overseas insurance firms have lowered insurance rates as the threat of terrorist attack appears to have been reduced. The new policy has been implemented to reflect this trend, the administration said.

The administration also reminded the public to double-check their flight tickets in the future to make sure they are not still charged for the tax.
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