The Tourism and Transport Forum (TTF) has renewed calls for the Australian Government to halve the Passenger Movement Charge (PMC) after the tax was dubbed an “inequitable barrier” by both sides of the Tasman.

Following a Senate Estimates hearing held in Australia today, the TTF said “concerns” about the tax were on the rise, particularly after a productivity commission for Australia and New Zealand report unveiled the charge should be “reconfigured as a genuine user charge for border services”.

According to the tourism Group, since the PMC increased to AU$55 in July this year, New Zealand arrivals into Australia fell 4.5 percent that month, and a further 2.4 percent in August.

Describing it as a “burden” on visitors, TTF chief executive John Lee has urged the Australian Productivity Commission to conduct a full review of the tax.

“We warned that raising the PMC would add to factors which are reducing Australia’s competitiveness as a destination and lead to a fall in arrivals from New Zealand,” Mr Lee said.

 “While it was initially introduced as a means to cover the cost of passenger facilitation at Australia’s airports, the PMC has become a significant revenue source for the government which will over-collect by $560 million this financial year.”

The TTF has estimated that the PMC currently cuts spending by inbound visitors by $814 million a year.