NCAA Orders Airlines to Pay Debts or Face Sanctions

NCAA Orders Airlines to Pay Debts or Face Sanctions

‎The Nigerian Civil Aviation Authority (NCAA) has directed all airlines (Domestic and Charter) operating in the country to forward in full un-remitted funds accrual to the Authority without further delay or face immediate sanctions.

 

This directive was handed down at  a meeting held Wednesday with the operators on non-remittance of 5 per cent ticket, cargo and charter sales charges [TSA/TCA] held at the Authority's Headquarters Annex in Lagos

 

The Director General of the NCAA, Captain Muhtar Usman, presided at the meeting in company of the Authority's top management staff.

 

According to the DG, the directive was with regards to the five per cent TSA/TCA collected at source from the air passengers by the airlines on behalf of the federal government of Nigeria.

“These 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 cover the following areas:

It is imperative that all unremitted funds must be forwarded in full to the NCAA immediately. The airlines must desist from using these funds ‘held in trust.’ The ongoing 5 per cent Ticket/Cargo/Charter/Sales Charges automation of payments, which offers real-time transparent transactions must be completed within two months. This will remove endless reconciliation of data and reduce high debt profile of Airlines to NCAA,” NCAA spokesman, Sam Adurogboye, said.

 

The regulatory Authority said reconciliation of all outstanding debts must be completed within 60 days and the 5 per cent Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding VAT and Passenger Service Charge(PSC) only; adding 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 include FAAN-Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS)-5 per cent VAT; and NCAA 5 per cent Ticket Sales Charges (TSC).

 

NCAA said any add-on charge, surcharge (i.e. fuel surcharges-(YQ, etc) or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.