FG implements 7% tax exemption on aircraft, spare parts – Onyema
The federal government has granted a seven percent tax exemption on aircraft and spare parts imported into Nigeria.
Nigerian airlines, which disclosed in a statement made available to our correspondent on Wednesday, said the government responded promptly to the association’s request.
AON Vice-Chairman Allen Onyema explained that the Senate Aviation Committee held an interactive meeting with all of Nigeria’s aviation agencies chaired by Aviation Minister Hadi Sirika.
He said all Nigerian airlines represented by AON management made a presentation to the government.
According to the statement, Onyema noted that the presentation made by the AON to the Senate committee elicited a positive response from the government and support from the Nigerian customs service.
Onyema said, âThe meeting was called by the Senate to discuss the reasons for the recent upsurge in flight delays and cancellations, among other issues and challenges facing the aviation industry.
âIt was on this occasion that AON made its presentation of the challenges facing all airlines. Our member airlines were present, but we made an articulate collective presentation to the Senate, which I read as vice-president on behalf of the association.
“It was on this occasion that the AON presented the question of the partial application of the 2020 finance law which prohibits the payment of duties and value added tax on aircraft and aircraft spare parts. imported by the Customs Service.
âIt should be noted that there was a seven per cent surtax on the duties imposed, which was not meant to be. This resulted in delays in the clearance of aircraft and aircraft spare parts, resulting in the grounding of aircraft that allegedly flew. “
He noted that after the Senate meeting, Finance Minister Zainab Ahmed and Sirika were contacted by airlines about the challenges.
The AON noted that as of July 7, airlines have cleared their aircraft spare parts through customs without paying a seven percent surcharge.
Onyema said: âAON, for the avoidance of doubt, commends the Federal Government for its unwavering support for the growth of indigenous investment in Nigeria.
âThis was very evident in the way the government responded to this challenge immediately within 48 hours, to the delight of the airlines.
“We also commend the Nigerian Customs Service for also helping airlines including, but not limited to Air Peace, which was used as an example, to get their spares and planes released.”
He added that the planes so far authorized had started to fly.
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