Understanding the Soaring Costs of Air Travel
The escalating costs of air tickets in Nigeria stem from a complex web of taxes, fees, and charges imposed on airlines, ultimately passed on to passengers. These levies include corporate taxes, ticket sales charges, value-added tax (VAT), development taxes, and various other fees like flight clearance, navigation, parking, and landing charges. Additionally, operational expenses such as fuel, maintenance, and depreciation further strain airline finances. These burdensome taxes and charges collectively amount to approximately 32.7% of domestic airlines’ gross revenues. The situation is exacerbated by government policies focused on revenue generation rather than supporting the industry’s growth.
For instance, helicopter operators face arbitrary charges like landing levies, which threaten to cripple the sector. Despite existing regulations and licensing fees, new charges are imposed without clear justification, leading to industry-wide concerns about sustainability.
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