Abolition of 17.5% on domestic airlines starts 1st April

Patrons of local airlines are expected to from Saturday, 1st April 2017, enjoy 17.5 percent slash on air tickets they purchase with the passage of the Appropriation Bill by Parliament.

This is the indication from the Aviation Minister, Cecilia Abena Dapaah.

The Bill which is expected to be passed today (Friday), will give approval to the tax cut announced by the Finance Minister, Ken Ofori Atta during the budget presentation earlier this month.

“The tax cut is yet to take effect when the Appropriation Bill is passed so passengers should bear with us…It’s a process and very soon we will all feel the effect and be happy with that,” she remarked.

The 17.5 percent VAT on domestic air tickets was among the eight taxes scrapped by the NPP government to bring respite to businesses.

The Aviation Minister, Cecilia Dapaah also tells Citi Business News the ultimate reduction should grow the local airline industry.

“As it stands now, the domestic airlines are very grateful and happy as well. I think the climate is good for the domestic airlines,” she added.

Domestic airline companies have bemoaned the high cost of operation in Ghana.

Key among them are the high fuel cost and the taxes charged on tickets.

The NDC government reduced the cost of aviation fuel by 20 percent.

This has since been followed by the cut in the 17.5 percent VAT on air ticket fares by the governing NPP.

At present, the two airline companies operating in the country;Starbow Airlines and Africa World Airlines are expected to benefit from the tax cuts.


Source: CitiBusinessNews

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