Senate seeks elimination of taxes, charges on aircraft importation

*Wants CBN to provide FX, single-digit interest rate for airlines

ADEBAYO TOPE

The Senate has called on the Federal Government of Nigeria to eliminate Value Added Tax (VAT) on the importation of commercial aircraft and aircraft spare parts.

The Upper Chamber encouraged the government to fully implement the Executive Order on zero customs duty and zero VAT as well-advised the Central Bank of Nigeria (CBN) to make foreign exchange readily and easily accessible for the aviation sector and make the interest rate a single digit for airlines to reduce the cost of capital.

This was even as the Senate mandated its Committee on Banking, Insurance and other Financial Institutions to facilitate review of the National Insurance Commission (NAICOM) Act to grant the externalization of insurance placements for domestic airlines.

In a statement signed by the Special Assistant (Press) to President of the Senate, Ezrel TABIOWO on Tuesday, the Senate, also, urged the Ministry of Aviation to allocate more entries and frequencies to domestic airlines on international routes, as well as create a business-friendly environment the air transport sector by fast-tracking the clearance of Aircraft On Ground (AOG) spare parts.

These formed resolutions reached following a motion considered on “The Need to Protect Nigerian Indigenous Airlines From Extinction.”

Sponsor of the motion, Adamu Aliero (APC – Kebbi Central), in his presentation expressed worry that despite the significant contributions of the Airline Operators of Nigeria (AON) to the growth and development of the Nigerian economy, domestic airlines in the country are faced with a multiplicity of challenges that threaten their continuous existence.

According to the lawmaker, the non-implementation of the executive order on zero customs duty and zero VAT on importation of commercial aircraft and aircraft spare parts; the high cost of capital and lack of single-digit interest rate for airlines; replacement of NCAA five per cent Ticket Sales Charge (TSC) among others are pertinent issues that continue to plague Nigeria’s aviation industry.