AON Hails FG Over Moves To Implement Zero Duty, VAT On Aircraft, Spare Parts

… Says Govt’s Action Strong Testament Of The Commitment Of The President, Aviation Minister
The Airline Operators of Nigeria (AON) has commended the Federal Government for its efforts at addressing the challenges facing the local airlines such as zero duty and VAT on aircraft and spare parts among others.
The commendation was made by the Chairman of AON, Capt. Nogie Meggison in an online statement made available to journalists in Lagos.
The chairman thanked the government for keying into the importance of aviation as one of the key drivers for economic recovery and its critical role of making Nigeria the pivot of air transportation in Africa.
Domestic airlines in the country are bedeviled by challenges such as the rise in fuel price, multiple charges and high exchange rate, lack of maintenance facilities, double digit interest rate on loans among other issues.
Meggison stated that the government graciously identified with the pains of the Nigerian travelling public by extending its support for commercial airlines in the country and reaffirming the Zero Duty and VAT payment on the importation of commercial airplanes and its spare parts as a way of alleviating the cost burden and ensuring safe flight operations.
He said that the clarification on the Zero Duty and VAT was contained in a letter dated June 20, 2016 and signed by the Nigeria Customs Service, which states that, “I am directed to inform you that by virtue of the Federal Government 2013 Fiscal Policy measures, Ref No. BD.12237/S.1008/T/11 dated 15th January, 2013. All Commercial Aircraft &its Spare Parts imported for use in Nigeria shall attract import duty rate of zero per cent (0%) and zero per cent (0%) VAT respectively.”
The letter continued, “I am further directed to inform you that the Honourable Minister of Finance letter Ref. No. BD/FP/TT/50/1/113 dated 20th March, 2015. Approval for the implementation of the ECOWAS Common External Tariff (CET) 2015 – 2019 and 2015 Fiscal Policy measures (National List) confirmed the extension of the 2013 Fiscal Policy measures.”
The Chairman of AON noted that the unprecedented move was a welcome development and a strong testament to the commitment of the Minister of State Aviation, Senator Hadi Sirika and the President Muhammadu Buhari led administration for feeling the pulse of the masses and making good on his promise to work assiduously to ensure that aviation doesn’t go out of the reach of the common man by giving it the attention it rightly deserves.
According to him, “AON would like to thank the Federal Government of Nigeria for giving a listening ear to our persistent calls for the removal of Duty and VAT on the importation of commercial aircraft and its parts as is done in other parts of the world. This is a welcome development and we commend the government for showing maturity and understanding of the critical role that aviation plays in driving the Nigerian economy thereby supporting Nigerian airlines, promoting safety and sustaining jobs.”
Meggison stressed the gesture was extended specifically to commercial aircraft operators and not private jet operators who are required to pay for luxury taxes.