Business News of 2014-01-27

Airlines to meet gov’t over VAT

Domestic airline operators are planning to petition the Ministry of Finance and Economic Planning over expansion of the Value Added Tax’s scope to include domestic air travellers.

Operators of domestic airlines, who say they are at pains to appreciate why VAT has been extended to local but not international air travel, have asked to meet the Ministry of Transport to discuss the tax impact on the industry.

The result of the tax will be higher ticket prices, which could put a brake on the recent surge in domestic air travel, they say.

“We have requested a meeting with the Minister of Transport. We will also be meeting with the Ghana Civil Aviation Authority (GCAA) and will send a petition to the Ministry of Finance,” Kwaku Antwi-Boasiako, Chief Commercial Officer of Antrak, told the B&FT.

Domestic airlines currently charge a tax of GH¢20 on ticket prices, comprising a GH¢5 airport tax and GH¢15 fuel surcharge.