[ 2017-03-31 ]

Tax free domestic air tickets likely to start tomorrow
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 - citibsinessnews.com

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