We’ll cut VAT, reduce fuel cost for local airlines – Cecilia Dapaah

The Minister Nominee for the newly created aviation ministry, Christina Abena Dapaah has resolved to reduce taxes on domestic air fares to increase passenger volumes within the country.

This is in fulfillment of the New Patriotic Party’s campaign promise to scrap the 17.5 percent VAT on domestic air tickets that make it unattractive for patronage.

Speaking at her vetting by the Appointments Committee of Parliament on Wednesday, Christina Dapaah stated that the plan will commence with a discussion with the various stakeholders in the domestic aviation sector.

“We are going to look at the handling charges and the prices of aviation fuel. We have realized that the airlines have thirty percent of cost comprising of aviation fuel while fifteen percent is made of handling charges,”

“I cannot assume that I know all the reasons for the dwindling fortunes of the domestic airlines as such I will be meeting the domestic airline operators and report back to the committee if the need arises,” she added.

The high cost of air tickets has led to a massive drop in passenger volumes between 2015 and 2016.

The figure has declined from 717,000 to 427,000 within the one year period.

The local aviation industry is also saddled with high operational cost as a result of the relative high cost of aviation fuel.

The Minister Nominee explains that the development has affected the lease agreements for domestic airline companies as the cost is expensive.

The erstwhile NDC government announced a twenty percent reduction in aviation fuel in October last year.

The move also formed part of the efforts at making Ghana an aviation hub within the sub-region.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana