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NCAA directs airlines to remit over N6b TSA/TCA funds in full

Nigerian Civil Aviation Authority (NCAA) has directed all Airlines (Domestic & Charter) operating in the country to forward in full unremitted funds accruable to the Authority without further delay, as at the last count these monies were only N6billion.

This directive was handed down at a meeting with the operators on non-remittance of 5% Ticket, Cargo and Charter Sales Charges [TSA/TCA] held at the Authority’s Headquarters Annex Wednesday, 20th April, 2016.

The TSC is a charge collected for the agencies by the airlines in trust, to be remitted to government coffers in order to avoid collection before flight and creating confusion, delays and missed flight.

In line with the Civil Aviation Act 2006, the NCAA is saddled with the collection of 5% sales charge on all tickets originating from Nigeria, cargo operations and charter/contract flights. The 5% Sales Charge after collection is shared with other aviation agencies namely: Nigerian Meteorological Agency (NIMET), Accident Investigation Bureau (AIB) and the Nigeria College of Aviation Technology (NCAT) as approved by the Civil Aviation Act 2006.

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

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.

At the meeting, the regulatory authority stated that it was imperative that all unremitted funds must be forwarded in full to the NCAA immediately directing the airlines to desist from using these funds ‘’held in trust’’;

According to the regulator, the ongoing 5% Ticket/Cargo/Charter/Sales Charges automation of payments which offers real-time transparent transactions must be completed within two (2) months. This will remove endless reconciliation of data and reduce high debt profile of Airlines to NCAA;

The NCAA further stated that reconciliation of all outstanding debts must be completed within sixty (60) days;

The body said,” that the 5% Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding Value Added Tax (VAT) and Passenger Service Charge (PSC) only; 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  i.)FAAN-Passenger Service Charge (PSC); ii.)Federal Inland Revenue Services (FIRS)-5% VAT; and iii.) NCAA 5% Ticket Sales Charges (TSC).”

“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.”

After exhaustive deliberations between NCAA team led by the DG on one hand and Operators by Capt Chimara O. Imediegwu of First nation on the other, agreement was reached by all parties on all the issues raised.

The Operators however asked for adjournment till next week Wednesday the 27th of April, 2016 to enable the Airlines hold further consultations on the Time Line and its implementations. In attendance were  the top  officials from  DANA Airlines, Azman Airlines, Medview Airlines, Chanchangi, Overland Airways.

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