NCAA Directs Airlines to forward all Unremitted Funds in Full

The Nigerian Civil Aviation Authority (NCAA) on Thursday directed all domestic and charter airlines operating in the country to immediately forward in full unremitted funds accruable to the agency.

The Director General, NCAA, Capt. Muhtar Usman, handed down the directive at a meeting held with the airline operators on the non-remittance of five per cent Ticket, Cargo and Charter Sales Charges (TSA/TCA) in Lagos.

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

He said the sales charges were to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory services for the overall benefit of all aviation stakeholders.

Usman noted that it was important that all unremitted funds be forwarded in full to the NCAA immediately.

"The airlines must desist from using these funds 'held in trust'.

"The ongoing five 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 the reduce high debt profile of Airlines to NCAA. Reconciliation of all outstanding debts must be completed within 60 days.

"Henceforth, the five per cent Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding VAT and Passenger Service Charge (PSC) only.

"All airlines must provide to the NCAA the breakdown of the recently introduced taxes plus fees component on all passenger tickets, which include the amount due to each government Agency.

"These include, the FAAN-Passenger Service Charge (PSC), the Federal Inland Revenue Services (FIRS)- five per cent VAT; and the NCAA's five per cent TSC," he said.

Usman said henceforth, any add-on charge, surcharge such as fuel surcharges or any other miscellaneous added on passenger ticket must be approved by it before applying these charges on passenger tickets.

Airline operators, who were led by Capt. Chimara Imediegwu, reached an agreement with the NCAA on the issues raised.

The operators however, asked for adjournment till April 27 to enable the airlines hold further consultations on the timeline and its implementation.

In attendance were top officials from DANA Airlines, Azman Airlines, Medview Airlines, Chanchangi, and Overland Airways.
 

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