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Compiled by the Government Communication and Information System --------------------------------------------------------------- Date: 30 Aug 2007 Title: Not all airport taxes are paid to ACSA --------------------------------------------------------------- By David Masango, tel: (012) 314-2230 Johannesburg - The Airports Company South Africa (ACSA) has clarified that it only receives a small portion of funds from the airport taxes that are being paid by passengers. This in light of the announcement that over the period 2007 to 2012 passenger service charges would increase by an average of 11.4 percent, sparking concern amongst passengers and other industry players. Group Executive responsible for Airport Operations Bongani Maseko said that different charges were often lumped together with other taxes and were called "airport taxes", giving the impression that the entire airport tax was paid to ACSA. However, the portion that is being paid to ACSA is passenger service charges only, he explained. He added that currently passenger service fees, excluding VAT, that went to ACSA were R26.32 for domestic, R53.51 for regional (Botswana, Lesotho, Namibia and Swaziland) and R70.18 for international flights. The rest of the tax money went towards security charges, Civil Aviation Authority safety charges, fuel levies and the SARS tourism levies. Mr Maseko added that ACSA would only start charging the new tariffs in October instead of at the beginning of the financial year (1 April 2007) as it normally did. It means for the last five months of the 2006/07 financial year, the tariffs would be adjusted to R29.19 for domestic; R61 for regional and R79.85 for international flights. In this regard Mr Maseko emphasised that the charges were independently regulated in a manner that ensured the protection of passengers. He added that the money generated from the passenger service charges were used for infrastructure development projects and ensuring an "efficient and customer-focussed" service. "Delivering efficient and customer-focused service is what underpins the company's focus over the period leading up to 2010 and beyond. However, for this to happen there is a related cost that needs to be recovered. ''Unfortunately, the flying public is often misled when it comes to facts around what constitutes airport taxes,'' he said. ACSA says passenger traffic is estimated to be in excess of 45 million passengers a year by 2012 from the current 32.8 million. Thus, the company will be spending R19.3 billion on infrastructure developments at its network of ten airports over the next five years. It explained that passenger demand, on the back of strong economic performance, was largely driven by the entry of low cost carriers into a market where a growing proportion of the population can now afford air travel. And the entry of new foreign carriers including Delta, Thai Airways and Virgin Nigeria also sustains international passenger arrivals. "It is pleasing that the Regulator has authorised new tariffs that will make it possible for ACSA to undertake its development programme for the airports," said Khulile Boqwana, ACSA's Group Specialist responsible for Economic Regulation. "ACSA has been experiencing, and will continue to experience, strong demand growth due to the rapidly growing GDP in South Africa and the surrounding geographical region, as well as the upcoming 2010 Soccer World Cup," he added. - BuaNews |
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