Nigerian domestic airlines’ operators, have resolved that with effect from June 14, they will no longer pay the compulsory Value Added Tax (VAT), to the federal government as according to the body, it amounts to double taxation.
The operators contend that Nigerian domestic airline travel is the only mode of transportation paying VAT in the country.
Addressing reporters after the meeting at the Airline Operators of Nigeria, AON, Secretariat in Lagos, the body’s Chairman, Captain Nogie Meggison, said the federal government has not been treating domestic airlines equally as some airlines are paying while some other airlines are not paying domestic VAT charges.
According to Meggison, “arising from its deliberations of airline CEOs, AON has resolved that effective June 14, its members shall cease to make VAT remittances as this is unfair. Some airlines are paying while some other airlines are not paying domestic VAT charges. “Also, Nigerian domestic airline travel is the only mode of transportation paying VAT in the country today as road, rail, marine and international airlines do not pay.”
The Operators also said VAT payment is one of the debilitating issues affecting the well-being of the aviation industry in Nigeria and operators have decided to address it “out of undiluted patriotism for the good of our nation and the Buhari administration.”
He recalled that “over 50 indigenous scheduled airlines have existed in this country, but only seven are flying today. The owners of these defunct airlines have success stories in other business endeavours but not in aviation. “It is the myriad of unfriendly policies and the harsh operating environment that have been the bane of the growth of aviation in Nigeria.”.
