Domestic Airlines to add VAT, NHIL to fares

All domestic airline operators have been mandated to add 15 per cent Value Added Tax (VAT) and 2.5 per cent National Health Insurance (NHIL) to all their air fares, with effect from July 1.

A statement jointly signed by Mr. James Antwi, Chief Executive Officer of Starbow Airline (AEROSURVEYS LTD), and Mr. Apiigy Afenu, Chief Executive Officer of Africa World Airlines, said this followed a directive from the Ghana Revenue Authority, resulting from the enactment of the Value Added Tax Act 2013 (Act 870), which received Presidential Assent on December 30, 2013.

It said: “this means domestic air travellers would now have to pay an additional 17.5 per cent, which represents 15 per cent VAT, and 2.5 per cent NHIL on every ticket purchased.

“We would thus like to state that domestic airline operators have not increased their fares,” the statement added.