GHANA: Government To Cut Taxes In Aviation Sector

President John Dramani Mahama on Monday performed the ceremony for work to begin on the US$62 million-phase-two of the Kumasi International Airport Development Project, with a promise to remove some of the taxes in the aviation sector.

The goal, he said, was to boost domestic airline services and bring down air fares.

He indicated that taxes on aircraft spare parts would be taken off and there would also be other incentive packages to make domestic aviation more attractive to investors.

Already prices of aviation fuel had been reduced, he added.

The project is expected to be completed in two years and would involve the construction of a new terminal, a new apron that could take two big sized aircrafts at a time and extend the runway to 1800 meters to accommodate bigger aircrafts.

Added to these are the building of hotels, restaurants and other entertainment facilities.

President Mahama said it was the vision of the government to develop the sector to make Ghana the aviation hub in the West Africa sub region.

He noted that the expansion of the Kumasi airport would increase passenger traffic from the current 500,000 per year to about one million.

He hinted of plans to build a 2,000-seating capacity second national theater, close to the airport to boost tourism in the Ashanti Region.

President Mahama underlined the government’s determination to continue with the rehabilitation of the major roads and the railway network to make transportation efficient – enhance the delivery of goods and services.

Mr. Fiifi Kwetey, the Transport Minister, spoke of the need for strong and resilient aviation infrastructure to support the national development agenda.

He said the development of airports on regional basis would help boost socio-economic activities.

Mr Charles Kwame Asare, Managing Director of the Ghana Airports Company, said alongside the improvement of infrastructure at the airports, the Company was investing in the development and training of its human resources to raise the quality of service delivery.

President Mahama had earlier visited the Kejetia redevelopment project to acquaint himself with the progress of work.

The phase one of the project is expected to be ready in March, next year.