FG reverses Buhari’s VAT-free policy for airlines

AirlineS 2

…Says operators must now pay tax for aircraft, spare parts, others

…Nigeria contravening ICAO, ECOWAS treaties -IATA blasts govt

By Chinelo Obogo

The Federal Government has said that from January 1, 2026, airlines would resume the payment of duties and Value Added Tax (VAT) on the importation of commercial aircraft, commercial aircraft engines, spare parts, and air tickets.

At a Business Webinar jointly organised by Aviation & Allied Business in collaboration with the Federal Inland Revenue Service (FIRS), with the theme: ‘Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative,’ the Assistant Director, Nigeria Revenue Service (formerly FIRS), Nkechi Umegakwe, said that there is no going back on the full implementation of the new Tax Reforms Act.

She said unlike what is currently obtainable; it will become mandatory from January next year for airline operators and other aviation companies to pay the Value Added Tax (VAT) in all of their services and operations.

Currently, airlines are exempted from the payment of import duties and VAT on the importation of commercial aircraft, commercial aircraft engines, spare parts, and air tickets, a policy implemented She insisted that all the above are now liable to VAT from January 1, 2026.

Details later…

Breaking news & top stories

Stay connected with The Sun Newspaper

Get breaking news, exclusive stories, and live updates delivered straight to your phone. Join thousands of readers already following us on Whatsapp Channel and Telegram.

Breaking news & top stories

Follow The Sun Newspaper

Get live updates & exclusive stories delivered straight to your phone.

Breaking news & top stories

Stay connected with The Sun Newspaper

Get breaking news, exclusive stories, and live updates delivered straight to your phone. Join thousands of readers already following us on Whatsapp Channel and Telegram.