The Nigeria Customs Service has stated that it does not collect duty on imported aviation parts, citing the amended Finance Act rules which grant duty-free importation of the parts to Nigerian aviation companies.
The NCS disclosed this in a statement on Tuesday afternoon in reaction to media reports which quoted the Chairman of Air Peace Airline to have stated that NCS is still collecting duty and VAT in defiance of the FG’s Executive Order on commercial airplanes and spare parts.
The Customs stated, “The attention of Nigeria Customs Service has been drawn to a deliberate misinformation of the public regarding payments of Customs duty, VAT and other charges like ETLS and CISS on imported commercial aircrafts and spare parts.
“Some sections of the media quoted the Chairman of Air Peace Airline to have stated that NCS is still collecting duty and VAT in defiance of the FG’s Executive Order on commercial airplanes and spare parts.”
The customs cited Section 39 of the Second Schedule of the Finance Act as amended which states that, “Airlines registered in Nigeria and providing commercial air transport services are entitled to duty-free importation of their aircrafts, engines, spare parts and components whether purchased or leased”.
What you should know
- Nairametrics reported on January 2021, that the federal government suspended the deduction of 7.5% Value Added Tax (VAT) on airfares and other air transport services. The suspension order was scheduled to take effect on January 1, 2021, as it is contained in the 2020 finance act recently signed by President Muhammadu Buhari.