Question NW238 to the Minister of Transport

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24 February 2017 - NW238

Profile picture: Jooste, Ms K

Jooste, Ms K to ask the Minister of Transport

(1)(a) What categories of tax are levied against the price of flight tickets only and (b) in each case, what is the (i) total annual income generated for (aa) her department and (bb) the Airports Company SA and (ii) tax income split between (aa) domestic and (bb) international air travel in South Africa; (2) how much will (a) domestic and (b) international air ticket prices be increased as a result of the proposed carbon dioxide tax?

Reply:

 

1. (a) Airports Company South Africa levies airport charges in the form of Passenger Service Charges (PSC) that are collected by airlines through air tickets.  The PSC is levied for the provision of passenger facilitation and infrastructure services at Airports Company South Africa’s airports.

(b) The PSC differ based on the route destination and can be split between the International PSC (R346 currently, to be reduced to R223 from 1 April 2017), the Regional PSC (R263 currently, to be reduced to R169 from 1 April 2017) and the Domestic PSC (R127 currently, to be reduced to R82 from 1 April 2017).

(i) Total annual income:

(aa)  Department of Transport – None;

(bb) Airports Company South Africa – R3.1 billion (2016 financial year).

(i) PSC Split (annual for 2016 financial year):

(aa)  Domestic:  R1.5 billion;

(bb) International:  R1.6 billion.

2. (a)  The amount of the proposed carbon tax will be determined by the National Treasury. Domestic airlines will determine how to filter the amount to the passengers. It is not possible to determine at this point how much a domestic air ticket price will be increased as a result of the proposed carbon tax.

(b) The proposed carbon tax will not apply to international aviationand therefore will not have a bearing on international air ticket prices.

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