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Government Urged To Reduce VAT On Air Fares
 
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25-Sep-2015  
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The Africa World Airline (AWA) has called on the government to review downwards, the 17.5 per cent Value Added Taxes (VAT) imposed on domestic air travel.

The airline argued that the tax was having a negative effect on the fortunes of the operators in the domestic aviation industry in particular as the cost of air travel had started deterring customers from patronising the services of the airlines.

Speaking to the Daily Graphic in Accra at the third anniversary celebration of AWA, the Head of Human Resource, Mrs Christabel Othelia Amegayibor, said “slapping 17.5 per cent on the airlines is a duplication because the airlines already pay the same rate as airport taxes.


“Our problem is that the consumer will bear that cost because air travel fares were pegged taking the taxes into consideration,” she said.

Currently, a one-way (Accra-Kumasi) ticket that used to cost GH¢245 now costs about GH¢297 as a result of 17.5 per cent VAT which already includes a mandatory GH¢5 cedi airport tax.

Presentation

In a related development, AWA has presented medical items to the Tamakloe Ward of the 37 Military Hospital to aid in the delivery of health care to patients as part of their third anniversary celebration in Accra.

The items included protective garments, face masks, surgical gloves, surgical gowns, theatre caps among others.
The anniversary on the theme "Consistency Reliability and Excellence" was climaxed with a health walk by the employees of AWA across some principal streets of Accra.

Presenting the items, the Chief Executive Officer (CEO) of AWA, Mr Michael Luo Cheng, said the donation was carried out under the auspices of the HAINAN-AWA Foundation, the corporate social responsibility arm of the airline.

He said last week, the foundation also donated GH¢5000 to the Asogli State in order to support its educational fund, and added that the foundation would continue supporting the needs of the Ghanaian society in which it operated.

Captain Brigitte Adama, the second in command at the Tamakloe Ward who received the items, commended the management of AWA and called on other corporate institutions to emulate their example.
She said the medical items would help improve health care and reduce risk to health care providers.

She also said for the hospital to achieve successful healthcare delivery system, there was the need to establish a long-term relationship with effective and trustworthy organisations such as AWA.

Future perspective
Moving forward, Mrs Amegayibor said AWA would continue to provide customers with excellent service in order to satisfy and dominate the market.

"As the best domestic airline of the year at the 10th National Tourism Awards, we wish to expand to the sub-region in order to provide our customers with excellent service," she said.
 
 
 
Source: Daily Graphic
 
 

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