Business
Domestic airlines pass on 17.5% VAT to passengers
Domestic airline travelers will from July 1, 2015 be paying an additional 17.5% VAT to their existing fares.
A statement issued in Accra, Thursday, by the operators said the new fare is in compliance with directive from the Ghana Revenue Authority due to the enactment of the Value Added Tax Act 2013 (Act 870) which received presidential assent on 30th December 2013.
“This means that domestic air travelers will have to pay an additional 17.5% VAT on every ticket purchased,” the statement said.
The statement was quick to add that domestic airline operators have not increased their fares. The new directive may hamper business activities of an industry already challenged.
The following is the full statement:
Introduction of VAT + NHIL on DOMESTIC AIR FARES
We wish to inform the general public and more especially the domestic airline travelers that effective 1st July 2015; all domestic airline operators are obliged and mandated to add 15% VAT +2.5% NHIL on all fares. This is a directive from the GRA due to the enactment of the Value Added Tax Act 2013(Act 870) which received presidential assent on 30th December 2013.
This means that domestic air travelers will have to pay an additional 17.5% (15% VAT +2.5% NHIL) on every ticket purchased.
We also like to state that the domestic airline operators have not increased air fares.
JAMES ERIC ANTWI
CEO/AEROSURVEYS LTD.
APIIGY AFENU.
COO/AFRICA WORLD AIRLINES
Introduction of VAT + NHIL on DOMESTIC AIR FARES
We wish to inform the general public and more especially the domestic airline travelers that effective 1st July 2015; all domestic airline operators are obliged and mandated to add 15% VAT +2.5% NHIL on all fares. This is a directive from the GRA due to the enactment of the Value Added Tax Act 2013(Act 870) which received presidential assent on 30th December 2013.
This means that domestic air travelers will have to pay an additional 17.5% (15% VAT +2.5% NHIL) on every ticket purchased.
We also like to state that the domestic airline operators have not increased air fares.
JAMES ERIC ANTWI
CEO/AEROSURVEYS LTD.
APIIGY AFENU.
COO/AFRICA WORLD AIRLINES
Credit: My Joy Online
