5 days ago
African airlines taxed out of reach for travellers
Carriers in East Africa have sounded the alarm over high taxes imposed by governments on goods and services in aviation, saying the levies are inflating ticket costs and stifling growth in an industry facing numerous challenges.
The African Airlines Association (Afraa) says many countries in Africa have raised taxes on aviation in an effort to boost revenues and meet fiscal targets, but at the expense of air travel and the viability of carriers.
In a report published last week, the lobby says a passenger departing from an African country pays an average of 3.5 taxes, charges and fees on international departures – about $68 – up from $66 in 2022.
Anyone departing from Europe and the Middle East pays an average of 2.53 and 2.69 taxes respectively, valued about $30 and $34.'Aviation in Africa faces huge challenges related to taxes and charges, which affect airlines, passengers and economic growth,' Afraa said in the report.'High taxes, inconsistent policies and reliance on revenues can stifle the development of a competitive and sustainable aviation industry.'The report says many African governments are ignoring the International Civil Aviation Organisation's (ICAO) policies on taxation, imposing exorbitant charges on the sector.
In addition to international departure taxes, more African countries have introduced transfer and arrival taxes, further inflating the cost of flying to and through the continent.
Regional departuresAs of 2024, some 42 African countries applied transfer taxes, up from 35 in 2022, increasing ticket prices by an average of $34.40. Arrival taxes rose from an average of $14 in 2021 to $34.10 last year.
Flights within the continent are not exempt. Since 2022, fees, charges and taxes on regional departures have risen by about $2 to $59.05, up from $57.40.
While average taxes in Africa are already above international norms, some countries charge close to $300 in taxes and fees on global and regional departures.
Gabon is the most expensive country to fly from, charging $297.70 for international flights and $260 for regional departures. Sierra Leone follows closely, levying $294 for the categories.
In East Africa, the Democratic Republic of Congo is the costliest, charging $109.90 for regional and international departures – the ninth most expensive on the continent.
On average, East African countries charge $63.32 in taxes on international departures and $52.82 on regional departures, ranking third after West Africa ($109.49 and $96.98) and Central Africa ($106.62 and $85.84).
Four countries in the region charge $50 to $100, one charges between $100 and $150, two fall between $30 and $50, and two charge less than $30.
Afraa does not specify charges by country except for the 10 most and least expensive.
An analysis by the East African Business Council in 2023 also established that countries in the region have hefty taxes on international and regional travel, with some airports being among the most expensive on the continent to depart from.
Juba Airport in South Sudan was the most expensive, with taxes amounting to 17 percent of ticket prices for air travel within the East African Community (EAC) and 11 percent within the rest of Africa.
Uganda's Entebbe Airport and Burundi's Bujumbura Airport came second with taxes eating up 15 percent of ticket prices, followed by Nairobi's Jomo Kenyatta Airport and Julius Nyerere Airport in Dar es Salaam, at 11 percent, with Kigali Airport in Rwanda being the cheapest at eight percent.
Aviation trafficAfraa says the continued rise in these taxes will suppress local demand for air travel and weaken tourism in Africa, which relies on aviation to transport about 56 percent of visitors.'Taxes and fees generally represent more than 55 percent of airlines' most affordable base fares, and over 35 percent of the total ticket price,' the report states.'Given the low purchasing power in Africa, it is urgent to assess the issue of high taxes to stimulate demand and make air transport affordable.'Indeed, air travel seems to be less developed and has less traffic in regions that have more taxes than in those with lower taxation on the industry, evident from the Afraa analysis.
Of the 10 countries with the lowest aviation taxes for international and regional departures, four – Morocco, Tunisia, Algeria and Libya – are from northern Africa.
All but one country from this region charge less than $50 in such taxes, according to the report.
In contrast, only three countries from West and Central Africa have taxes of less than $50, while the majority charge more than $100 in international and regional departure taxes, not to mention arrival and transfer taxes on airline tickets.
As most African countries grapple with debt sustainability and scramble for revenue, Afraa says indiscriminate taxation risks strangling industries critical for growth.'To foster greater air connectivity, economic growth and regional integration, it is important for African governments to consider harmonising tax structures, reducing excessive charges and pursuing alternative funding methods for aviation infrastructure,' the report concludes.
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