The Ghana Civil Aviation Authority (GCAA) has given hint it will soon remove import duty on aircraft spare parts. The move is part of efforts to reduce the cost of domestic fares to boost the sector.

The Director-General of the GCAA, Simon Allotey, gave the hint at a ceremony to outdoor the fifth aircraft of Africa World Airline.

The ceremony also coincides with the airline’s fifth year of operation. Mr. Allotey said with the plan to scrap VAT on airfares, and with other incentives, domestic airlines will experience a massive boost in the coming years.

“Impacts on airfares will be the eventual removal of VAT on domestic airline tickets. The Civil Aviation Authority is also working collaboratively with the Ministry of Aviation in government to look into reducing or eliminating the VAT on domestic airline tickets. We also want to remove import duty on aircraft spares and duty on ancillary aircraft equipment, so when all these are removed, it means there could be a reduction on aircraft fares which will lead to more people travelling by air”.