The Airline Operators of Nigeria (AON) says it has resolved that effective June 14, 2018 “its members shall cease to make VAT remittances as this is unfair as some airlines are paying while some other airlines are not paying domestic VAT charges.”
In a statement released after its meeting of Airline CEOs held yesterday in Lagos, the body expressed displeasure over the fact that “Nigerian Domestic Airline Travel is the only mode of transportation that is subjected to the Value Added Tax (VAT). This imposition creates a suppression of domestic airline travel demand, therefore resulting in airlines not being able to optimally utilize their aircraft assets and more importantly, creating a market distortion. The AON’s position is that the VAT on airline ticket sales for domestic carriers must be removed completely forthwith as road transportation, rail, marine and international air travel carriers are not subjected to VAT.”
The body’s chairman, Capt. Nogie Megisson had at various fora, made presentations to government on the challenges of Nigeria’s local airlines and possible solutions.
AON equally wants government to implement the Zero Customs Duty on Commercial Aircraft, Spares and Engines approved years ago as some airlines have had “their aircraft fleet grounded for days in some cases, thereby resulting in cancelled flights which in event results in chaos at our airports to the displeasure of our esteemed customers. This situation is unacceptable and should be reversed forthwith.”
“AON’s position is that any foreign carrier should be restricted to only two points of entry into the country and explore interline options with domestic airline operators should it become necessary for expansion in order to protect capital flight and jobs of our ailing Nigerian youths,” the statement adds.