BUSINESS NEWS

Domestic airfare drops… as 17.5% VAT is removed

Domestic airplane

Domestic Airline operators have reduced airfares following the passing of the appropriation bill by parliament.

The bill which was passed on Friday saw parliament scrap the 17.5% VAT on domestic air ticket fares.

Patrons of local airlines were officially expected to from Saturday, 1st April 2017, enjoy 17.5 percent slash on air tickets they purchase with the passage of the Appropriation Bill by Parliament, according to the Aviation Minister, Cecilia Abena Dapaah.

The Bill is aimed at giving approval to the tax cut announced by the Finance Minister, Ken Ofori-Atta during the 2017 budget presentation.

The 17.5 percent VAT on domestic air tickets was among the eight taxes scrapped by the NPP government to bring respite to businesses.

It is gathered that the base fare for a trip from Accra to Kumasi for instance which hitherto cost GH¢315 has been reduced to GH¢269.

Chief Operating Officer of Africa World Airlines (AWA), Captain Samuel Thompson confirmed to Citi Business News the cuts have been implemented.

“According to the appropriation Bill passed last Friday, we have removed the 17.5% VAT off the domestic airfare. Even though we have a basic fare, depending on what class you get, your ticket in the fare might go up. Depending on the distance as well. The base fare we had was Gh¢315; it is now going to be Gh¢269. This is for the Accra-Kumasi flight. So if anyone is purchasing a ticket today the person will definitely get a reduction.” he confirmed.

Story by citibusinessnews

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