Airline Operators under the group Airline Operators of Nigeria (AON) have threatened to stop the payment of Value Added Tax (VAT) from June 14.
The Airline Operators lamented that the continued payment of VAT on airline tickets by domestic airlines in the country is discriminatory as other modes of transportation such as rail, the road is not subjected to such payments.
It also lamented that the continued payment of VAT will further suppress the domestic airline business and will incapacitate the operators from optimally utilizing their aircraft assets thereby 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 operators also lamented a situation where some privileged operators are exempted from VAT payment.
It also condemned plans by the Federal Government to revive the nation’s national carrier noting that is such move is counter-productive and against private entrepreneurs.
The group noted that the idea of using taxpayers money to float a national carrier was no longer fashionable
“In the overall scheme of things, the ‘national carrier’ can only result in a huge distortion to the current market and will be a huge drainpipe to the government’s treasury.” The group said.
Recall that the Minister of state Aviation, Hadi Sirika had hinted that the new national carrier will commence operations by the end of this year. The minister recently met with a team from Aircraft manufacturer, Boeing in furtherance of the government resolve to set up a new carrier.
