NCAA directs Airlines to forward unremitted funds accruable to the Authority
The Nigerian Civil Aviation Authority (NCAA) has directed all Airlines (Domestic and Charter) operating in the country to forward in full unremitted funds accruable to the Authority without further delay.
This directive was handed down at a meeting with the operators on non-remittance of 5 percent Ticket, Cargo and Charter Sales Charges [TSA/TCA] held at the Authority’s Headquarters Annex Wednesday, 20th April, 2016.
The director general of the NCAA, Capt. Muhtar Usman who presided at the meeting in company of the Authority’s top management staff noted that the directive is with regards to the 5percent TSA/TCA collected at source from the air passengers by the airlines on behalf of the federal government of Nigeria.
He explained that thes sales charges are to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory services for the overall benefits of all aviation stakeholders.
The meeting agreed that: It is imperative that all unremitted funds must be forwarded in full to the NCAA immediately. That the airlines must desist from using these funds held in trust. That the ongoing 5 percent Ticket/Cargo/Charter/Sales Charges automation of payments which offers real-time transparent transactions must be completed within two months, as this will remove endless reconciliation of data and reduce high debt profile of Airlines to NCAA; reconciliation of all outstanding debts must be completed within sixty(60) days; that the 5 percent Ticket/ Cargo/ Sales Charges must be on Gross Ticket excluding VAT and Passenger Service Charge(PSC) only.
Other resolutions reached include, that all airlines must provide to the Authority the breakdown of the recently introduced ‘’Taxes+Fees’’ component on all passenger tickets which include the amount due to each Government Agency, that is FAAN-Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS)-5 percent VAT; and NCAA 5percent Ticket Sales Charges (TSC), that any add-on charge, surcharge (i.e. fuel surcharges-(YQ, among others) or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.
After exhaustive deliberations between NCAA team led by the DG on one hand and Operators led by Capt Chimara O. Imediegwu of First nation on the other, agreement was reached by all parties on all the issues raised.
The Operators however asked for adjournment till next week Wednesday the 27th of April, 2016 to enable the Airlines hold further consultations on the Time Line and its implementations.
The event was attended by top officials from Dana Airlines, Azman Airlines, Medview Airlines, Chanchangi, Overland Airways among others.
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