NCAA to sanction defaulting airlines over automation deadline

Capt. Muhtar Usman, NCAA D-G

Capt. Muhtar Usman, NCAA D-G

 

By Sade Williams

 

The Nigerian Civil Aviation Authority (NCAA) said it will invoke the necessary provisions of the law against defaulting airlines as the final ultimatum to the airlines to automate their remittance of the statutory 5% Ticket Sales/Cargo Sales Charge (TSC/CSC) end today , March 31, 2017.

 

The Authority had shifted the January 31st 2017 ultimatum to March ending at the instance of the Airlines Operators of Nigeria (AON) at their earlier meeting with the Director General, Capt.Muhtar Usman and his team at the Aviation House, adding that the introduction of the Aviation Revenue Automation Project (ARAP) for revenue collection is to aid data integrity, transparency, transaction accountability, controls and revenue assurance to  the Authority.

 

“With the expiration of this final warning, it is expected that all airlines that are yet to adhere to the automation and remit collected revenue  to NCAA  should comply forthwith.

 

“Failure to comply will be viewed seriously as the Authority will be forced to invoke the necessary provisions of the law against defaulting airline”, Sam Adurogboye, NCAA spokesman said in a statement.

 

He explained that the 5% Ticket Sales Charge/Cargo Sales Charge, an Internally Generated Revenue (IGR) to NCAA and other Agencies as enshrined in the Civil Aviation Act 2006 is not a TAX or LEVY  on the airlines, but a charge paid by passengers for  services rendered towards the development of Aviation Industry in Nigeria.

 

The decision to collect the charges by the airlines, he said, was mooted  by the operators and unanimously agreed upon at the 2001 Civil Policy Review with the sole aim to enhance passengers’ facilitation.

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