Coronavirus: Ghana’s airport revenue records GH¢170.06 million shortfall

Provisional fiscal figures released on public finances has revealed that Ghana’s airports have recorded a revenue shortfall of GH¢170.06 million due to the coronavirus pandemic.

According to the figures, this represents a 59.07 percent decline as against a revenue target of GH¢287.88 million collected from airport taxes.

For the period of the pandemic which broke out in March this year in Ghana, taxes collected from airport revenue amounted to only GH¢117.82 million.

Additionally, the revenue accrued is also lower than the GH¢239.70 million recorded in the same period in 2019, according to the figures released by the Ministry of Finance in August.

From the figures released, the shortfall is projected to impact government’s annual revenue target which pegged at GH¢556.23 million from airport levy.

Background

Taxes collected from airport revenue are primarily geared towards financing the maintenance of the country’s airport.

The tax is usually imposed for the use of the airport and often included in the price of an airline tickets.

Meanwhile, a portion of the country’s airport revenue collected from the tax goes towards servicing of a US$250 million loan secured for the construction of the Terminal Three area of the Kotoka International Airport (KIA).