AWA advocates reduction in taxes on aviation fuel
The Africa World Airline (AWA) has strongly advocated a reduction in the taxes on aviation fuel to help bring the price to appreciable levels.
According to the indigenous airline operator, Ghana’s aviation fuel is the highest compared to the sub-region making the country unattractive for players in the industry.
The Chief Executive Officer (CEO) of AWA, Mr Michael Cheng Luo, speaking to the GRAPHIC BUSINESS in Accra, indicated that the aviation fuel was high because of the taxes imposed on it and noted that instead of increasing taxes, the government should rather see how best the taxes could be reduced.
Considering the specialised fuel is sold for about US$2.30 cents per litre in Nigeria, it is sold for close to US$3.14 cents per litre in Ghana. It is sold for much less in Benin and Cameroon, for US$2.30 and US$1.94 cents per litre respectively.
Many airlines that once used the airport have packed out, siting the high cost of aviation fuel in the country as their reason.
For instance, due to the many taxes, Ghana's aviation fuel is about 50 per cent higher than its peers in the sub-region.
This has compelled many of the airlines to travel beyond the borders to refuel only to top up in Ghana.
Just like fuels for vehicles, the government has placed heavy taxes on aviation fuel as part of efforts to raise more revenue for the state.
Going forward, the CEO warned that failure to address the issue could cripple the domestic aviation industry.
“Aviation fuel in Ghana is much more expensive than it is in the whole sub-region. So we go to Lagos and fuel our aircraft that is because Ghana’s aviation fuel is a lot higher” he said.
He also called for immediate action on the reduction of the 17.5 per cent VAT on domestic fares, which he said had reduced patronage of domestic flights.