ECOWAS elects to reduce taxes applied to air transport by 25%

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The Economic Community of West African States (ECOWAS) has considered a proposal for compensation to air passengers in the case of excessive flight delays.

It also elected to address the pressing challenges of high air transport costs and to fortify aviation security across the region.

These decisions are contained in a statement issued at a meeting by air transport ministers from ECOWAS held in Lomé, Togo.

The high-level ministerial gathering, according to the statement, built upon the outcomes of experts consultations which focused on formulating strategies to ensure more affordable, efficient and secured air transport services to support regional connectivity and promote deeper economic integration.

In order to lower the severe impact of the cost of air transport services in the community, the regional economic bloc adopted the supplementary Act to the regional common policy on aviation charges, taxes, and fees.

“The Authority also endorses the regional strategy which includes, among others, a 25% reduction of passenger and security charges and the removal of taxes applied to air transport, in compliance with the International Civil Aviation Organisation (ICAO) principles and procedures on Taxes, Fees and Charges, which prohibits taxing of air transport services based on the non-relatedness, transparent and related pricing principles.

“To ensure a holistic improvement of the region’s air transport industry, the Authority also approves the Regulation establishing a common framework for Aviation Security and the increased rate of compensation for passengers who are denied boarding of flights through an amendment of Article 4 of the Supplementary Act on delayed boarding, flight cancellations and denied boarding.

“The authority directs ministers in-charge of air transport and the commission to coordinate and monitor the effective and uniform application of the Supplementary Acts and Regulations in all Member States, while ensuring that Airlines also comply with cost reduction obligations to ensure that ticket prices reflect the reductions to benefit all Community citizens and populations,” the statement added.

The attendees observed that in West Africa, charges, taxes and fees represent almost fifty per cent (50%) of the total air ticket cost.

Also, the ministers adopted a regional regulation relating to the common basic standards and measures applicable to aviation security.

The efforts, according to the statement, “align with the instructions issued by the authority of ECOWAS Heads of State and Government during their 65th Ordinary Session in July 2024, which called for decisive actions to reduce air transport costs and improve accessibility for citizens throughout West Africa.”

ECOWAS commissioner for infrastructure, energy, and digitalisation, M. Sédiko Douka, in his view emphasised that “high air travel costs in West Africa serve as a barrier to trade and regional integration.

“Aligning our aviation taxes with global standards is imperative to make air travel more accessible and competitive,” he said.

For his part, the Togolese minister of public works and infrastructure, Mr Sani Yaya, reinforced the call for collaborative action, stating that harmonising aviation charges and enhancing security will attract vital investments, bolster tourism, and strengthen economic cooperation among ECOWAS member states.