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By Faheem Lawal
Airline operators, exporters and business groups, have called on the Federal Government to review the country’s tax system and reduce the burden on businesses, warning that multiple taxes and unpredictable charges are threatening investment, jobs and economic growth.
The call was made at a stakeholders’ town hall organised by the Office of the Tax Ombud in Lagos on Friday, with airline operators warning that the aviation industry could face further collapse without urgent government intervention.
The meeting, held at the Lagos Airport Hotel, Ikeja, was themed, “Promoting Fairness in Tax and Revenue Administration.” It was the second in a series of town hall engagements, following an earlier meeting in Abuja, and attracted business groups, professional bodies, airline operators and revenue agencies.
The Vice President of the Airline Operators of Nigeria (AON), Dr. Allen Onyema, who was the special guest of honour, warned that the aviation industry was “going comatose” and might not survive the next six months without urgent action.
Onyema, who is also the Chief Executive Officer of Air Peace, said the combination of 7.5 per cent Value Added Tax (VAT) on flight tickets and a five per cent charge payable to the Nigerian Civil Aviation Authority (NCAA) adds 12.5 per cent to ticket prices.
He said the additional charges were making air travel more expensive for passengers, with serious implications for airlines, their workers and the wider economy.
He urged the government to replace the five per cent charge with a fixed amount per ticket, stressing that airlines were not opposed to government revenue generation but needed a tax structure that would allow them to survive.
According to him, airlines also face high borrowing costs of between 26 and 30 per cent, while more than 80 airlines have recently collapsed.
He disclosed that the AON would submit a document detailing the industry’s concerns to the government in December.
