The Airline Operators of Nigeria (AON) has applauded President Muhammed Buhari and the Federal Government of Nigeria for issuing an Executive Order for the removal of Value Added Tax (VAT) from “All Forms of Shared Transportation.”
AON Chairman, Sir Nogie Meggison said in a statement yesterday that the decision by the Government following the Federal Executive Council (FEC) Meeting of June 6, 2018 presented a veritable opportunity for the aviation industry to immediately take advantage of the decision to expedite a White Paper to that effect.
“We as Nigeria have been crying out for decades now for discussions on the immediate removal of VAT from domestic air transportation in line with global best practice, but we have barely been heard over the years. VAT is an added burden on our passengers who have limited disposal funds and have reached their elastic point in this difficult time in the nation’s economy,” he said, adding that “VAT on commercial air transportation is a huge departure from what obtains worldwide and an increased burden on the Nigerian travellers. Ghana, Benin Republic, Togo and Cote d’Ivoire located next door to us have all abolished VAT for air transportation.”
The recent decision by the Federal Government to remove VAT from Domestic Air Transportation will go a long way to bring succour to groaning Nigerian travelers to be able to afford to travel by air and the growth in demand for domestic air travel will lead to the creation of jobs by the whole air transport service chain (airlines, airports, ground handlers and catering companies) as well as increase revenues for government.
“It is our prayer that the President will go a step further to encourage the House of Assembly to pass this Executive Order into law as quickly as possible,” the statement adds.