The Nigeria Civil Aviation Authority (NCAA) has introduced a new Civil Aviation Act (CAA) 2022 to tackle debt owed by domestic airlines to federal agencies.
Nigerian aviation authorities have been complaining of the failure of airline operators in remitting the mandatory five per cent charge from sales of tickets and cargo services.
Earlier in August, it was disclosed by the Nigeria Civil Aviation Authority that airline operators are owing N19 billion after failing to remit the five per cent charge from sales of tickets and cargo services.
According to the NCAA, the airline operators have collected the money from their passengers through ticket sales, but they didn’t hand over the fee to the federal agencies.
NCAA, Nigerian Airspace Management Agency (NAMA), Nigerian Safety Investigation Bureau (NSIB), and the Nigerian Meteorological Agency (NiMET) are the beneficiaries of the five per cent charge.
Following the introduction of the Act, any airline operator that fails to pay the five per cent charge from sales of tickets and cargo services will face two-year imprisonment, N5 million fine, or both.
“an air operator, which fails to remit to the authority, within the time specified in the regulations the 5 percent charge, commits an offence and its directors are each liable on conviction to a fine of N5,000,000 or imprisonment for a period of two years or both,” the Act reads.
The newly introduced civil aviation act (CAA) 2022 explains that, “There shall be a 5 percent of airfare, contract, charter and cargo sales charge payable to the authority, which shall apply on all international and domestic air transportation originating in Nigeria irrespective of place of sale, issuance of air ticket or execution of the contract of carriage.”
Section 23 (2) of the Act said “the 5 percent of airfare, contract, charter and cargo sales charge shall be chargeable on the total amount, excluding statutory fees and taxes – (a) paid by a passenger for an airfare; in a contract relating to carriage of persons or goods for hire and reward in the case of air transportation not involving the issuance of an air ticket; (c) paid for a charter flight; and (d) of the cargo sales”.