A MEMBER OF THE AIRLINE OPERATORS OF NIGERIA, CAPTAIN ADO CALLS FOR A REVIEW OF THE TAX REGIME IN THE AVIATION INDUSTRY 10-12-24
By Sadiq Aminu A member of the Airline Operators of Nigeria, AON, Captain Ado Sanusi, has called for a review of the tax regime in the aviation industry, saying that multiple taxation is hindering the growth of airlines in Nigeria.
At a news conference in Lagos, Captain Sanusi emphasized that while the government has made efforts to support the airlines, more needs to be done to address the high cost of running an airline in the country.
He noted that the cost of funding is a major challenge, and that the 50% at-source deduction in the aviation industry is affecting airlines negatively.
Captain Sanusi proposed that the federal government should look at aviation as an enabler to economic growth and foreign direct investment, rather than as a source of revenue.
He cited Rwanda as an example of a country that has invested heavily in its aviation industry, resulting in significant growth and foreign investment.
The airline executive also called for the scrapping of the 5% tax on airlines and the introduction of a single figure that airlines should pay.
He suggested that the Nigerian Airspace Management Agency (NAMA) and the Nigerian Civil Aviation Authority (NCAA) should have a single charge for their services, rather than multiple charges.
Captain Sanusi also expressed concern about the handling companies in the industry, saying that they are creating a bad precedent by increasing prices by 600%.
He called for the regulation of the handling companies to ensure fair competition and prevent anti-competitive practices.
The airline boss also emphasized the need for the NCAA to stop dictating prices to handling companies, saying that this is a bad business practice that can hinder the growth of the economy.
He proposed that the NCAA should only file prices with them, but not dictate the prices.