Section 23 Civil Aviation Act 2022
Section 23 of the Civil Aviation Act 2022 is about Air ticket, charter and cargo sales charge. It is under Part V (Financial Provisions) of the Act.
(1) There shall be a 5% of airfare, contract, charter and cargo sales charge payable to the Authority which charge shall apply on all international and domestic air transportation originating in Nigeria irrespective of place of sale, issuance of air ticket or execution of the contract of carriage.
(2) The 5% of airfare, contract, charter and cargo sales charge shall be chargeable on the total amount, excluding statutory fees and taxes—
(a) paid by a passenger for an airfare ;
(b) in a contract relating to carriage of persons or goods for hire and reward in the case of air transportation not involving the issuance of an air ticket ;
(c) paid for a charter flight ; and
(d) of the cargo sales.
(3) The Authority may delegate the power to collect the 5% of airfare, contract, charter and cargo sales charges to airlines and such funds collected shall be remitted to the Authority.
(4) The Authority shall by regulations prescribe the manner and time for making remittances of the funds collected on its behalf by the airlines.
(5) The 5% of airfare, contract and charter sales charge (CSC) payable to the Authority shall apply to all operators engaged in transportation of persons by air for hire and reward whether using rotary or fixed wing aircraft.
(6) All Air Operator Certificate (AOC) holders, who manage fleet of aircraft other than that of the operator, which aircraft is included in the operations specifications or authorisation of the operator shall pay a 5% CSC management fee arising from such contracts.
(7) The 5% of airfare, contract, charter and cargo sales charges and management fee shall be paid in the currency of the transaction and may be reviewed by regulations or orders made by the Authority.
(8) Funds accruing from the charges referred to under subsection (7) shall be distributed in the following manner —
(a) Nigeria Civil Aviation Authority — 56% ;
(b) Nigerian Airspace Management Agency — 22% ;
(c) Nigerian Meteorological Agency — 9% ;
(d) Nigerian College of Aviation Technology — 7% ; and
(e) Accident Investigation Bureau — 6%.
(9) Where any of the agencies listed under subsection (8) is privatised, it shall immediately cease to share in the funds and the share of such privatised agency shall be applied or distributed in equal percentage among the remaining agencies.
(10) An air operator which fails to remit or pay to the Authority, within the time specified in the relevant regulations made under this Act, the 5% of airfare, contract, charter, cargo, sales charge and management fee collected under this section, commits an offence and its directors are each liable on conviction to a fine of N5,000,000 or imprisonment for a term of two years or both.
