Airfare Aviation Taxes Passenger Perception Air Travel Benin City Nigeria

This study investigated airport passengers’ perceptions of taxes and airfares in Benin City, Edo State, Nigeria. The primary objective was to examine how Value Added Tax (VAT), Airport Infrastructure Tax (AIT), Security Tax (ST), and Passenger Service Tax (PT) influence passengers’ perception of airfare affordability and their travel decisions. The study adopted a descriptive survey research design, and data were collected from a sample of 120 airport passengers using structured questionnaires. Descriptive and inferential statistical analyses were conducted, including frequency distribution, mean scores, standard deviation, and multiple regression analysis, to examine the relationships between taxation and passenger behavior. The findings revealed that passengers are aware of the various taxes included in airfares and that these taxes significantly affect both the perceived value for money and travel decisions. VAT was identified as a major contributor to higher ticket prices, while AIT and PT were perceived to improve airport infrastructure and services. Security Tax was acknowledged as necessary for flight safety, although transparency issues were highlighted. Regression results showed that VAT, AIT, ST, and PT collectively have a significant impact on airfare perception, explaining a substantial portion of the variation in travel behavior. The study concluded that aviation taxes play a critical role in shaping passenger perceptions and decisions, and recommended that government authorities, airport operators, and airlines review taxation policies to enhance transparency, affordability, and accessibility. This research contributes to a deeper understanding of the economic and behavioral effects of aviation taxation in Nigeria and provides practical insights for policymakers and industry stakeholders in optimizing air transport pricing strategies.