Bosnia freezes aviation development tax

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The Federal government of Bosnia and Herzegovina has temporarily suspended a ten euro per passenger tax “for the development of air transport”, which will result in lower airline ticket prices. The tax, introduced in 2005 in order to fund the development of the country’s air transport sector, was only slapped onto airlines flying in and out of Sarajevo. The tax has been suspended until December 31, 2021. “Considering that the aviation industry has been one of the hardest hit by the coronavirus, this decision will create the preconditions necessary to remedy the affects of the pandemic”, Sarajevo Airport said. A tender for airlines willing to base their aircraft at Sarajevo Airport from next year is also about to end.

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