NCAA reads riot act to airlines over unremitted funds

Nigerian Civil Aviation Authority (NCAA) has directed all airlines operating in Nigeria to forward in full unremitted funds accruable to the Authority without further delay. Investigations reveal that the funds run into over N6 billion.

This directive was handed down at a meeting with the operators on non-remittance of 5 percent ticket, cargo and charter sales charges (TSA/TCA) held at the Authority’s headquarters annex in Lagos, with Muhtar Usman, director-general, NCAA, presiding over the meeting.

According to Usman, the directive is with regards to the 5 percent TSA/TCA collected at source from the air passengers by the airlines on behalf of the Federal Government.

These sales charges, he said, 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.

He said: “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 percent ticket/cargo/charter/sales charges automation of payments, which offer 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; Reconciliation of all outstanding debts must be completed within 60 days;

“The 5 percent ticket/cargo/sales charges must be on gross ticket excluding 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.

“This include: FAAN -Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS)- 5 percent VAT; and NCAA 5 percent Ticket Sales Charges (TSC), and

“Any add-on charge, surcharge or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.”