By Jeorge Wilson KINGSON
Government has increased airport tax by 25%., following Parliament’s amendment of the Airport Tax Act, 1963, (Act 209) last week. The objective of the amendment is to raise the airport tax from US$50 to US$75 for passengers departing by aircraft to a destination outside of West Africa.
During the presentation of government’s budget and economic policy for this year to Parliament, Minister for Finance, Dr. Kwabena Duffuor, indicated government’s proposal to increase airport tax to help raise the needed revenue to support improvement in basic amenities, which travelers demand and deserve to have.
The amendment of the bill is therefore seen as a fulfillment of that promise, which was also captured in the NDC campaign manifesto.
”Comfortable and secured resting places, better environment for those in transit and accessible and decent places of convenience are essential airport facilities, especially as Ghana seeks to become the hub of the sub-region,” Dr. Duffuor stated.
According to the report of the finance committee in Parliament, the increment will not affect domestic passengers and those traveling to West African destinations.
In view of the fact that the International Civil Aviation Organisation (ICAO) regulations require that the entire proceeds of taxes, such as the airport tax, be used exclusively on the development and maintenance of the airport, BusinessWeek learnt that existing laws with regard to the ratio may be reviewed soon to accommodate the ICAO law.
Currently under Ghana’s existing laws, airport tax revenue is shared at the ratio 60:40 between the consolidated fund and the Ghana Civil Aviation Authority respectively.
BusinessWeek further learnt that despite the increment, Ghana is still competitive internationally, which is in line with the desire to make her a cheaper and competitive tourist destination.
Government has increased airport tax by 25%., following Parliament’s amendment of the Airport Tax Act, 1963, (Act 209) last week. The objective of the amendment is to raise the airport tax from US$50 to US$75 for passengers departing by aircraft to a destination outside of West Africa.
During the presentation of government’s budget and economic policy for this year to Parliament, Minister for Finance, Dr. Kwabena Duffuor, indicated government’s proposal to increase airport tax to help raise the needed revenue to support improvement in basic amenities, which travelers demand and deserve to have.
The amendment of the bill is therefore seen as a fulfillment of that promise, which was also captured in the NDC campaign manifesto.
”Comfortable and secured resting places, better environment for those in transit and accessible and decent places of convenience are essential airport facilities, especially as Ghana seeks to become the hub of the sub-region,” Dr. Duffuor stated.
According to the report of the finance committee in Parliament, the increment will not affect domestic passengers and those traveling to West African destinations.
In view of the fact that the International Civil Aviation Organisation (ICAO) regulations require that the entire proceeds of taxes, such as the airport tax, be used exclusively on the development and maintenance of the airport, BusinessWeek learnt that existing laws with regard to the ratio may be reviewed soon to accommodate the ICAO law.
Currently under Ghana’s existing laws, airport tax revenue is shared at the ratio 60:40 between the consolidated fund and the Ghana Civil Aviation Authority respectively.
BusinessWeek further learnt that despite the increment, Ghana is still competitive internationally, which is in line with the desire to make her a cheaper and competitive tourist destination.
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