The Entebbe International Airport is now set to beat Jomo Kenyatta International Airport (JKIA) as the cheaper point of transit.
This follows the decision by the Ugandan government to scrap taxes on airlines using the Entebbe Airport. This scrapping of taxes will directly make it cheaper for transiting passengers to travel through Entebbe Airport.
In Entebbe Airport, passengers pay up to $47 in airport taxes when compared to JKIA’s $50, a cost that airlines pass to passengers.
“Under the Value Added Tax Act, the following amendments have been made, exempting the supply of airport user services charged by the Civil Aviation Authority to reduce the cost of transiting through Entebbe Airport,” Uganda’s Finance Minister Matia Kasaija said.
Entebbe International Airport is the only international airport in Uganda. It is located about 6 kilometres (3.7 mi) southwest of the town of Entebbe, on the northern shores of Lake Victoria.
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According to African Airlines Association (Afraa), airports in Europe charge less than in Africa in terms of taxes and fees on arrival and transfer.
The average amount of transfer taxes and fees in Africa is USD 36.02 compared to $17.55 in Europe. Taxes and fees on arrival are $8.81 in Europe, while $12.32 in Africa.
On March 24, 2015, Finance minister Matia Kasaija asked Parliament to approve a $325 million loan from Exim Bank of China for the expansion works on the airport. The money was approved, and the works started in January the following year. Uganda’s aim was to expand the airport to a capacity of 150,000 operations per year.
This loan has been subject to a controversy after it emerged that Uganda could end up losing Entebbe Airport to China if it defaults on the loan. China has however stated that it is not interested in taking over country’s only international airport.