Airport Company To Retain Revenues

The Ghana Airport Company Limited (GACL) will, henceforth, be allowed to retain all revenues arising from airport taxes rather than sharing them with the Ghana Revenue Authority (GRA).

The move, which is sanctioned by the Ministry of Finance and Economic Planning (MoFEP) and announced in the 2013 Budget and Economic Policy Statement of the government, is expected to bolster the revenue base of the Airport Company as it prepares for rising expenditure emanating from the upgrading and expansion of facilities at the various airports nation-wide.

The airport tax took off in the country in December 1963 following the coming into effect of Act 206, 1963, – the act that established and governs the implementation of the tax.

The taxes have been revised over the years, the latest being the one done in the 2011 budget. Currently, passengers travelling on economy class tickets pay US$100 while those on business class pay US$150. People on first class tickets also pay US$200, according to the 2011 revisions captured in that year’s budget.

Although the tax is collected by the Internal Revenue Division of the GRA, it was shared between the Revenue Authority and the Airport, in line with the act establishing the tax.

The Finance and Economic Planning Minister, Mr Seth Terpker, however suggested in this year’s budget that the Airport Company be allowed to retain the entire collections to help meet its expenditure.

“I am proposing that the company be allowed to retain all airport tax collections so that the entire revenue raised can be used to develop both the international and local airports,” the minister said.

He, however, added that the Finance Ministry would soon present “a sustainable plan” on infrastructure development and expansion at the various airports. Already the expansionary works are on-going at the Tamale, Kotoka and Kumasi to help bring them to speed with trends in the local aviation industry.

Source: Graphic Business