Tax on imported aviation spare parts to be slashed

• Posted on August 21, 2018
• by Ellsamwise King
• Comment

Operators of domestic airlines are to heave a sigh of relief with the amount of money they spend on aviation spare parts.

It will follow the reduction in taxes on such products by the government.

The Ministry of Aviation is currently engaging the Ministry of Finance for a rebate in the taxes paid by domestic airline operators.

Outgoing Aviation Minister, Cecilia Dapaah explains that her outfit is yet to receive a feedback from the domestic industry operators to influence the way forward.

The ultimate reduction taxes will mean that the cost of airfares will eventually drop for domestic passengers.

In the Minister’s view, the decision has to have a real impact on pricing so as not to lose sight of the purpose of the reduction.

According to Madam Cecilia Dapaah, this should reduce the cost of operation and make the domestic airlines competitive.

“On the imported spare parts, discussions have been held with the domestic operator represented by AWA. They are yet to bring us back, what type of spares that they import so that we can adequately address the issue,” she said.

Commenting on the protection of aviation lands, the minister highlighted plans to co-ordinate with the Accra Metropolitan Assembly to evict encroachers from the lands belonging to the Air Navigation Services Department of the Ghana Civil Aviation Authority (GCAA).

She insists her outfit will not back down on its plan.

“We saw structures and I openly said they should be pulled down if they are found in the critical areas that they don’t need to be. I believe assessment has been done per the last briefing. We are working with the AMA and the Lands Commission to see which ones will be affected. We have three colors; white, red and blue,”

“All these carry certain structures that can be allowed. So we are in the process of assessment; whichever structure which is found within any authorized area, will be pulled down,” the Minister added.

Commenting on the progress of work for the home based carrier, Madam Cecilia Dapaah stressed that discussions are ongoing and that the government will be entitled to ten percent stake in the new entity.

Meanwhile for the first half of this year; that is between January and June, domestic passenger movements reached 178,007 while international passenger movements reached 916,087.

Also, freight conveyed via air, amounted to 26,519 tonnes within the six months period.

Source: CNR