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21 November 2017

Results of AACO 50th AGM

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Taxation

Taxes imposed on airlines and their customers have a detrimental effect to the benefits that the airlines bring to the consumer and consequently to the economy as a whole. Nonetheless, we see that several states do not yet see the adverse effect that the increase in taxes has on their economy. Taxes are imposed on the sale and use of air transportation, fuel, property, equipment, sometimes income, development aid, environment and climate change, and tourism expansion.  

 

Although most Arab governments look at aviation as a driver to the economy, we still see some hikes in government taxes.

 

Work with ACAC and IATA

AACO has always been keen on promoting an environment with reduced taxes on airlines, especially when it comes to taxes introduced by governments to fund projects not related to the aviation industry.

 

AACO cooperates with ACAC and IATA when it comes to advocating for a lower taxes environment. The three associations have published a joint declaration related to taxes as well as airport charges that has instituted their joint work in this area.  Please click here to view the joint declaration.

           

Tunis Convention

Based on a resolution by the Council of Arab Transport Ministers, AACO worked with Arab financial authorities under the umbrella of the Arab League of States to revise the existing Tunis Convention 1979 on the ‘Reciprocal Exemption from Taxes and Charges on Activities and Equipment of Arab Air Transport Institutions’.

Following seven meetings of Arab Financial Authorities, with the participation of AACO, that revised the Tunis Convention of 1979, the Council of Arab Transport Ministers adopted the revised convention. The Convention will now go to the Social and Economic Council of the Arab League of States that gathers the economic and financial affairs ministers of Arab states for their review and potential adoption. Following this process, the Convention goes to the Council of the Arab League of States that gathers the foreign affairs ministers of the Arab states which normally approves it if the specialized councils recommend that.

 

Last updated on 7 December 2017

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