pjoalfa

I hope the BA envoys to FT see this one.

I've long been running into problems using Avios to originate in SDQ or PUJ. Everything works fine until the fees come up. BA is insisting on charging Dominican Transportation tax (a sales tax % of the ticket price) on award seats that cost, obviously, nothing. What price they base it on is a mystery but the illustrations below are clearer than any explanation I could give.

The exact same award flights shown on AA.com and Ba.com with the fee breakdown showing BA's misapplication of Dominican Tax. The difference between the two is exactly the transportation tax.







This is not new. Here's an example from 2011 which includes fuel surcharges that did not actually exist copied from an email I sent them at the time:

from BA for flights on IBERIA flight#/metal
SDQ-MAD-BIO 22/3/11
BIO-MAD-SDQ 26/3/11
Total 120,000 BA Miles + $ 1,624.96

Government, authority and airport charges Per adult
Transportation Tax - Dominican Rep USD966.56 - ***THERE IS NO TAX ON A FREE TICKET***
Airport Authority Fee - Dominican Rep USD30.00
Airport Infrastructure Fee - Dominican Rep USD32.60
International Airport Departure Tax - Dominican Rep USD20.00
Departure Charge - Spain USD34.85
Security Tax - Spain USD10.95
Total government, authority and airport charges* USD1,094.96

British Airways fees and surchargesPer adult
Fuel Surcharge** USD530.00 ***THERE IS NO FUEL SURCHARGE ON IBERIA.****
Total British Airways fees and surcharges USD530.00

Total taxes, fees and surcharges per person
USD1,624.96


The same from Iberia itself (which sadly I did not save) had no YQ and NO DR Transportation tax. In this example it was far more ridiculous because IB's PAID fare in J for that flight AI was $1,800 or so.



Back in 2011 I wrote EC, who told me I should call as they could do nothing by email. I have a desire to argue with a USA EC phone agent about company policy that lies somewhere below having a tarantula lay eggs in my ear, so I am hoping someone from BA sees this and corrects it. Meanwhile for me it's easier to do it with AA, but I'm trying to find ways to spend some Avios for, you know, free flights.

callum9999

No idea about your first point but BA put fuel surcharges on Iberia as deliberate policy. It's irrelevant whether Iberia charge them or not, BA does.

If you want to avoid it then I believe you can transfer the avios to an Iberia Plus account and book it from there (though it needs to be 90 days old and active (i.e. earn Avios on it) before you can transfer).

HIDDY

I'm not saying they shouldn't be charging it but it might be worth inquiring further.
I recently highlighted some humongous ZKAC charge BA were adding on to EZE originating redemptions for Argentina based members and as if by magic it disappeared several days later.
I wonder if those that were charged it were ever refunded.

pjoalfa

You're hilarious HIDDY!

pjoalfa

I guess I shouldn't have mentioned the YQ on Iberia so as not to muddy the issue.

The issue is they are charging a tax based on a % of the ticket price. The ticket price is zero. There is no tax. I've lived here all my life. No other airline has ever charged tax on 0. Not AA, not IB, not Eastern or PanAm, not Copa/Taca, UA.

The various sales taxes have changed over the years. The tax in question is an 18% VAT. Something you folks across the pond are familiar with. 18% of what exactly? Of the "theoretical"$3500 the ticket would cost?

I should think this issue is plain to see.

In fact, here is the exact law which states how it is applied:



The pertinent part says "the sales price of all tickets with origin in the DR issued anywhere in the world shall be the basis on which the tax is calculated."

shorthauldad

Is the "sales price of a ticket" the base fare? Or the final fare, including all taxes, fees and surcharges?

Award tickets that actually cost zero (plus a bundle of miles/Avios) are a bit a rarity in the BAEC universe...

IAN-UK

A similar situation developed some time ago with hotels in Delhi. The tax authorities were reportedly not entirely happy trusting hotels not to fiddle their books, so insisted that any occupancy of a room should be taxed at a percentage of that room's "rack rate" rather than the zero rate for award stays.

The result was a hefty charge on "free" stay at some hotels, and quite barmy extra charges for upgrades. Whether the hotels taking advantage of an unenforced edict, and pocketing the tax, I don't know: yet each time I kicked up a fuss, I got a refund from the hotel.

I'd hate to cast British Airways in the role of a Delhi hotel, but from the OP's evidence the parrallel seems clear.

If the airline has been making a mistake, it will be grateful to learn of this through FT so that it begin to make restitution to any poor soul who has been overcharged

I'm sure they are keeping tabs on the tax-take for Brasil-originating travel, for the same reason.

pjoalfa

Base fare. There's no tax on tax.

pjoalfa

Maybe I should 2x1 a BA flight to a Delhi hotel and just get all my frustration out at once!

shorthauldad

Tell that to HMRC, who make sure VAT is charged on (e.g. alcohol) duty!

EDIT: also it's hard to see e.g. airport fees as a "tax"...

pjoalfa

Sacrilege!

But no, it's still on base fare. All award tickets pay all the airport fees, etc. as always, and YQ if it exists but that's it. I might understand if they applied the tax to an airline imposed YQ, but that's not the case in my current example and not the case in the old IB example or the tax would have been 200% of YQ.

RafKa

Was wondering if there was ever any response from BA on this? Was hoping to book some SDQ-MIA flights with Avios, but balking at the U$600 in taxes for a 2.5hrs flight!

barnstaple

I just encountered this issue but seemed to get around it by transfering my avios to IB and booking the BA PUJ - LGW with them. Tax went from Ł350 to 249 Euros...

RafKa

FYI, the issue now seems to be (sort of) resolved. SDQ-MIA rtn flights carry a total of U$105 in taxes, in C or Y.

Jamier45

Can BA flights be booked on IB?