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Thursday 28 March 2024

2021-04-07

[N] As Majority Leader be circumspect with your utterances

2021-03-19

[I] Goldman Sachs staff revolt at ‘98-hour week’
[I] Over half of staff go back to workplace
[I] Health chiefs confirm Oxford-AstraZeneca Covid jab safe to use
[S] Kotoko Signs Second Brazalian Player
[N] It Is A Blatant Lie That I’ve Declared My Prez Ambition-Agric Minister
[S] Accra Mayor to change face of sports in Greater Accra
[S] Ambassador Lutterodt charges GOC prez to tackle Martha Bissah issue
[S] Ben Nunoo-Mensah hits ground running for GOC
[S] Black Stars to Engage Uzbekistan In International Friendly
[N] House of Chiefs calls for collaboration with MMDCEs for development
[N] Baby Harvesting: More suspects picked
[N] Police pledge commitment to bringing Sheikh Maikano’s murderers to book
[B] ARB Apex Bank admitted to Ghana-Sweden Chamber of Commerce
[N] Desist from starting race ahead of time - Obiri Boahen to NPP presidential
[N] Gov’t announces construction of five interchanges in Ashanti
[N] Controversial textbooks: NPP urges NaCCA to enforce rules without fear or favour
[N] Staff working on Tamale interchange call off strike
[N] Newly proposed taxes a huge hindrance to businesses’ recovery
[N] Government can’t take a unilateral decision on salaries for public workers
[N] Ghana records 2 new Covid-19 variants; experts call for immediate action

2021-03-17

[S] First GFA safety and security seminar takes place today
[B] NDPC holds consultation medium term framework for 2022-2025 in Oti
[B] More investments recorded in Western Region despite COVID-19
[N] Ghana records 698 COVID-19 deaths
[N] NDC’s Ofosu Ampofo behaves like a toddler – Allotey Jacobs
[S] Don’t tax sports betting, ban it – Ato Forson to government
[N] Ama Benyiwaa Doe slams Allotey Jacobs; says he has no influence
[N] Approving Akufo-Addo’s ministers ‘regrettable and unfortunate’ – NDC caucus
[S] Don't rush Satellites players, warns GFA coaching boss
[N] Eastern Regional Hospital detains 246 patients for non-settlement of bills
[N] COVID-19 vaccination in Ghana: 1,000 reports received on adverse effects
[N] Ignore reports of rift between local, foreign staff at AfCFTA secretariat – Govt
[N] Remain calm, support our leadership in Parliament – NDC Council of Elders
[N] Ghana hasn’t recorded any case of blood clots from COVID-19 vaccination – FDA
[N] 9-year-old boy burnt to death as stepfather sets house ablaze
[B] Budget cuts for legislature, judiciary won’t be entertained – Speaker
[I] Half of UK managers back mandatory Covid vaccines for office work
[I] Brussels to propose Covid certificate to allow EU-wide travel

2021-03-16

[I] Nick Candy leads £1m drive to oust London mayor Sadiq Khan
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General News

[ 2016-04-28 ]

High taxes threaten aviation industry
The International Air Transport Association (IATA)
has bemoaned the high taxes imposed on the
domestic aviation sector in Ghana

, saying the phenomenon militates against the
growth of the industry.

According to the Vice President of IATA for
Africa, Mr Raphael Kuuchi “taxes on jet fuel
increase the cost burden of airlines who are
already operating in a challenging environment and
hinders the domestic growth of an industry that
brings extensive socio-economic benefits.”

He said Ghana must not treat its aviation industry
as an easy target for taxation if it is serious
about becoming an aviation hub in the sub region,
adding that the negative impact on the economy of
taxing air transport outweighs the revenue
raised.

Mr Kuuchi has therefore urged the Ghanaian
government to recognize aviation as a
socio-economic enabler and provide the appropriate
infrastructure.

In an interview with this paper, Mr Kuuchi noted
that the elimination of taxes on jet fuel would
put Ghana in line with the common practice in
Europe and countries around the world where
aviation growth is strong.

“It will not only boost aviation in the country
but create a new opportunity for Ghana to become a
hub for aviation and fuel trade,” he stressed.

The IATA Vice President encouraged government to
reduce taxes and charges on infrastructure in
order to attract more capital inflow into the
industry.

Ghana’s domestic aviation sector has been
reeling under high operational costs, worsened by
the high costs of jet fuel which has compelled
some service providers to fuel their aircraft in
neighbouring Nigeria.

The difficult terrain has seen the exit of three
airlines, Antrak Air, Fly540 and CityLink leaving
only two, Starbow and Africa World Airlines (AWA).


The three have recently indicated their return to
the industry but experts are wondering whether
they can survive the odds.

The imposition of the 17.5 per cent Value Added
Tax (VAT) by government in 2014 sent airfares
through the roof.

Fares on all routes jumped up by 40 per cent after
the VAT took effect, resulting in a 30 per cent
reduction in passenger patronage of flights.

Even though the government through the Ghana
Airport Company (GACL) is investing in the
expansion of airport infrastructure across the
country, industry players say the pace is too
slow.

Chief Executive Officer (CEO) of Starbow, Mr James
Eric Antwi lamented the alarming losses the
airline has had to contend with in the wake of bad
weather.

“ The weather became so bad that in December
2015 we operated only 25 per cent of our flights,
in January this year we did 65 per cent and fell
drastically again within the first week of
February, “ he explained.

Mr Antwi blamed the Airline’s predicament on the
absence of requisite infrastructure at the
regional airports to assist visibility and
navigation.

“These are challenges that have to do with
infrastructure; we need to have proper
navigational equipment on the ground to direct the
aircraft to the airfield;” he said.

For an airline that flies five times a day into
Kumasi, the impact of cessation of flights on
operations and on passengers is tremendous.

“For both Starbow and AWA, we have had serious
cash flow problems; Starbow aircraft is a leased
one and whether we fly or not we have to pay for
the lease and it’s quite costly; we have to pay
salaries of staff,” Mr Antwi observed.

For many businessmen and women who travel by air
especially to Kumasi, Sunyani and Takoradi the
impact of the cessation of flights was quite
heavy.

“We have mining and oil companies whose staff
leave Accra every morning to Takoradi and return
in the evening and so when we had to cancel our
flights they all suffered with some of them
turning to the roads,” the Starbow CEO
recalled.

He hoped that government will through the Ghana
Civil Aviation Authority (GCAA) provide the
Instrument Landing System (ILS) in Kumasi, Tamale
and Takoradi to aid operations.

IATA called on government to come up with the
appropriate regulation to secure the industry for
growth, pointing out that Ghana and other African
nations have an opportunity to enact smarter
regulations to enable better aviation
connectivity.

It said implementation of the Yamoussoukro
Decision will open up air routes within the
continent and provide opportunities for more than
5 million additional passengers a year.

“Investors will only invest in an industry if
they can see the potential for positive
returns,” IATA added.

Source - The Finder



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