The Airline Operators of Nigeria has
commended the Federal Government for issuing an Executive Order for the
removal of Value Added Tax from air transportation.
According to the AON, following the
Federal Executive Council meeting of June 6, 2018, the Federal
Government ordered that VAT should be removed from all forms of shared
transportation.....
“This presents a veritable opportunity
for the aviation industry to immediately take advantage of the decision
to expedite a White Paper to that effect. It is our prayer that
President Muhammadu Buhari will go a step further to encourage the
National Assembly to pass this Executive Order into law as quickly as
possible,” the AON Chairman, Capt. Nogie Meggison, said in a statement
on Wednesday.
He stated that the decision would go a
long way to encourage more Nigerians to fly and put the airlines on a
positive footing to grow the economy and contribute to the country’s
Gross Domestic Product.
Meggison said, “We as Nigerians have
been crying out for decades now for discussions on the immediate removal
of VAT from domestic air transportation in line with global best
practices, but we have barely been heard over the years. VAT is an added
burden on our passengers who have limited disposal funds and have
reached their elastic point in this difficult time in the nation’s
economy.
“This adversely affects the sector by
reducing the number of those who can afford to travel by air due to high
fares in this tough economic time. This has been shown to be true
according to a recent report by the Federal Airports Authority of
Nigeria that passenger traffic dropped by 27 per cent in 2017 and by
another seven per cent in the first quarter of 2018, making it a total
of 34 per cent drop in passenger traffic within a span of one year.”
He stated that VAT on commercial air
transportation was a huge departure from what obtained worldwide and an
increased burden on Nigerian travellers.
Source: Punch Online
r cent in 2017, and by
another seven per cent in the first quarter of 2018, making it a total
of 34 per cent drop in passenger traffic within a span of one year.”
Furthermore, he noted that domestic air transportation in Nigeria was
the only mode of commercial transportation that pays VAT. He noted that
road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated 1st
Jan. 1997); Part L (b) No. 8.” he added.
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
The Airline Operators
of Nigeria (AON) yesterday commended President Muhammadu Buhari and the
Federal Government of Nigeria for listening to the cries of domestic
airlines in the country.
After series of complaints by domestic carriers, the federal government
recently issued an Executive Order for the removal of Value Added Tax
(VAT) from “All Forms of Shared Transportation.”
In an official statement issued Wednesday and signed by the AON
Chairman, Sir Nogie Meggison, the operators stated that they believe the
decision by the government following the Federal Executive Council
(FEC)’s meeting of June 6, 2018, presents a veritable opportunity for
the aviation industry to immediately take advantage of the decision to
expedite a white paper to that effect.
Meggison stated, “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years. VAT is an added burden on our passengers who
have limited disposal funds and have reached their elastic point in this
difficult time in the nation’s economy.”
Meggison said that, this adversely affects the sector by reducing the
number of those who can afford to travel by air due to high fares in
this tough economic time, adding that “this has been shown to be true
according to a recent report from the Federal Airports Authority of
Nigeria (FAAN) that passenger traffic dropped by 27 per cent in 2017,
and by another seven per cent in the first quarter of 2018, making it a
total of 34 per cent drop in passenger traffic within a span of one
year.”
Furthermore, he noted that domestic air transportation in Nigeria was
the only mode of commercial transportation that pays VAT. He noted that
road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated 1st
Jan. 1997); Part L (b) No. 8.” he added.
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
The Airline Operators
of Nigeria (AON) yesterday commended President Muhammadu Buhari and the
Federal Government of Nigeria for listening to the cries of domestic
airlines in the country.
After series of complaints by domestic carriers, the federal government
recently issued an Executive Order for the removal of Value Added Tax
(VAT) from “All Forms of Shared Transportation.”
In an official statement issued Wednesday and signed by the AON
Chairman, Sir Nogie Meggison, the operators stated that they believe the
decision by the government following the Federal Executive Council
(FEC)’s meeting of June 6, 2018, presents a veritable opportunity for
the aviation industry to immediately take advantage of the decision to
expedite a white paper to that effect.
Meggison stated, “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years. VAT is an added burden on our passengers who
have limited disposal funds and have reached their elastic point in this
difficult time in the nation’s economy.”
Meggison said that, this adversely affects the sector by reducing the
number of those who can afford to travel by air due to high fares in
this tough economic time, adding that “this has been shown to be true
according to a recent report from the Federal Airports Authority of
Nigeria (FAAN) that passenger traffic dropped by 27 per cent in 2017,
and by another seven per cent in the first quarter of 2018, making it a
total of 34 per cent drop in passenger traffic within a span of one
year.”
Furthermore, he noted that domestic air transportation in Nigeria was
the only mode of commercial transportation that pays VAT. He noted that
road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated 1st
Jan. 1997); Part L (b) No. 8.” he added.
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
The Airline Operators
of Nigeria (AON) yesterday commended President Muhammadu Buhari and the
Federal Government of Nigeria for listening to the cries of domestic
airlines in the country.
After series of complaints by domestic carriers, the federal government
recently issued an Executive Order for the removal of Value Added Tax
(VAT) from “All Forms of Shared Transportation.”
In an official statement issued Wednesday and signed by the AON
Chairman, Sir Nogie Meggison, the operators stated that they believe the
decision by the government following the Federal Executive Council
(FEC)’s meeting of June 6, 2018, presents a veritable opportunity for
the aviation industry to immediately take advantage of the decision to
expedite a white paper to that effect.
Meggison stated, “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years. VAT is an added burden on our passengers who
have limited disposal funds and have reached their elastic point in this
difficult time in the nation’s economy.”
Meggison said that, this adversely affects the sector by reducing the
number of those who can afford to travel by air due to high fares in
this tough economic time, adding that “this has been shown to be true
according to a recent report from the Federal Airports Authority of
Nigeria (FAAN) that passenger traffic dropped by 27 per cent in 2017,
and by another seven per cent in the first quarter of 2018, making it a
total of 34 per cent drop in passenger traffic within a span of one
year.”
Furthermore, he noted that domestic air transportation in Nigeria was
the only mode of commercial transportation that pays VAT. He noted that
road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated 1st
Jan. 1997); Part L (b) No. 8.” he added.
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
Read More at: https://leadership.ng/2018/06/21/vat-domestic-airline-operators-hail-buhari-for-listening-to-their-plight/
Lagos – The Airline
Operators of Nigeria (AON) has commended President Muhammadu Buhari, for
the recent signing of an Executive Order for the removal of Value Added
Tax (VAT) from “All Forms of Shared Transportation.”
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Lagos – The Airline
Operators of Nigeria (AON) has commended President Muhammadu Buhari, for
the recent signing of an Executive Order for the removal of Value Added
Tax (VAT) from “All Forms of Shared Transportation.”
Chairman House Committee on Appropriation, Hon. Mustapher Dawaki; SSA
National Assembly, Senate, Senator Ita Enang; Chairman Senate Committee
on Appropriation, Senator Danjuma Goje; President Muhammadu Buhari
(sitting); Vice President Yemi Osinbajo; Chief Whip House of
Representatives, Hon. Doguwa and the Chief of Staff to the President,
Mallam Abba Kyari during the signing ceremony of the 2018 Appropriation
Bill into law at the State House, Abuja. Photo by Abayomi Adeshida
The AON Chairman, Capt. Noggie Meggisson, who gave the commendation in a
statement issued on Wednesday in Lagos, expressed optimism that the
domestic airlines were included in the VAT exemption.
Meggisson said the decision taken at the Federal Executive Council (FEC)
meeting on June 6 presents a veritable opportunity for the aviation
industry to immediately take advantage of the decision to expedite a
White Paper to that effect.
He said: “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years.
“VAT is an added burden on our passengers who have limited disposal
funds and have reached their elastic point in this difficult time in the
nation’s economy.
“This adversely affects the sector by reducing the number of those who
can afford to travel by air due to high fares in this tough economic
time.”
Meggisson said a recent report from the Federal Airports Authority of
Nigeria (FAAN) showed that passenger traffic dropped by 27 per cent in
2017 and by another seven per cent in the first quarter of 2018.
In all, a total of 34 per cent drop was recorded in passenger traffic
within a span of one year.
According to him, domestic air transportation in Nigeria is the only
mode of commercial transportation that pays VAT.
“Road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated Jan. 1,
1997); Part L (b) No. 8.
“VAT on commercial air transportation is a huge departure from what
obtains worldwide and an increased burden on the Nigerian travellers.
“Ghana, Benin Republic, Togo and Cote d’Ivoire located next door to us
have all abolished VAT for air transportation.
“The recent decision by the Federal Government to remove VAT from
domestic Air transportation will go a long way to bring succor to
groaning Nigerian travelers to be able to afford to travel by air,” he
said.
The AON chairman added that the growth in demand for domestic air travel
would lead to the creation of jobs by the whole air transport service
chain (airlines, airports, ground handlers and catering companies) as
well as increase revenues for government.
Meggisson said :“This is a step that Ghana took over a year ago and the
benefits are there for all to see today as Accra is fast becoming the
aviation hub for West Africa.
“AON would therefore like to use this medium to once again thank the
president and his administration for coming to the aid of domestic
airlines by the recent Executive Order to remove VAT from all forms of
shared transportation.
“It is our prayer that the president will go a step further to encourage
the National Assembly to pass this Executive Order into law as quickly
as possible.
“This will go a long way to encourage more Nigerians to fly and put the
airlines on a positive footing to grow the economy and contribute to the
Gross Domestic Product (GDP).” (NAN)
WAC/ASO/BOLA/AFA
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Lagos – The Airline
Operators of Nigeria (AON) has commended President Muhammadu Buhari, for
the recent signing of an Executive Order for the removal of Value Added
Tax (VAT) from “All Forms of Shared Transportation.”
Chairman House Committee on Appropriation, Hon. Mustapher Dawaki; SSA
National Assembly, Senate, Senator Ita Enang; Chairman Senate Committee
on Appropriation, Senator Danjuma Goje; President Muhammadu Buhari
(sitting); Vice President Yemi Osinbajo; Chief Whip House of
Representatives, Hon. Doguwa and the Chief of Staff to the President,
Mallam Abba Kyari during the signing ceremony of the 2018 Appropriation
Bill into law at the State House, Abuja. Photo by Abayomi Adeshida
The AON Chairman, Capt. Noggie Meggisson, who gave the commendation in a
statement issued on Wednesday in Lagos, expressed optimism that the
domestic airlines were included in the VAT exemption.
Meggisson said the decision taken at the Federal Executive Council (FEC)
meeting on June 6 presents a veritable opportunity for the aviation
industry to immediately take advantage of the decision to expedite a
White Paper to that effect.
He said: “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years.
“VAT is an added burden on our passengers who have limited disposal
funds and have reached their elastic point in this difficult time in the
nation’s economy.
“This adversely affects the sector by reducing the number of those who
can afford to travel by air due to high fares in this tough economic
time.”
Meggisson said a recent report from the Federal Airports Authority of
Nigeria (FAAN) showed that passenger traffic dropped by 27 per cent in
2017 and by another seven per cent in the first quarter of 2018.
In all, a total of 34 per cent drop was recorded in passenger traffic
within a span of one year.
According to him, domestic air transportation in Nigeria is the only
mode of commercial transportation that pays VAT.
“Road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated Jan. 1,
1997); Part L (b) No. 8.
“VAT on commercial air transportation is a huge departure from what
obtains worldwide and an increased burden on the Nigerian travellers.
“Ghana, Benin Republic, Togo and Cote d’Ivoire located next door to us
have all abolished VAT for air transportation.
“The recent decision by the Federal Government to remove VAT from
domestic Air transportation will go a long way to bring succor to
groaning Nigerian travelers to be able to afford to travel by air,” he
said.
The AON chairman added that the growth in demand for domestic air travel
would lead to the creation of jobs by the whole air transport service
chain (airlines, airports, ground handlers and catering companies) as
well as increase revenues for government.
Meggisson said :“This is a step that Ghana took over a year ago and the
benefits are there for all to see today as Accra is fast becoming the
aviation hub for West Africa.
“AON would therefore like to use this medium to once again thank the
president and his administration for coming to the aid of domestic
airlines by the recent Executive Order to remove VAT from all forms of
shared transportation.
“It is our prayer that the president will go a step further to encourage
the National Assembly to pass this Executive Order into law as quickly
as possible.
“This will go a long way to encourage more Nigerians to fly and put the
airlines on a positive footing to grow the economy and contribute to the
Gross Domestic Product (GDP).” (NAN)
WAC/ASO/BOLA/AFA
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Lagos – The Airline
Operators of Nigeria (AON) has commended President Muhammadu Buhari, for
the recent signing of an Executive Order for the removal of Value Added
Tax (VAT) from “All Forms of Shared Transportation.”
Chairman House Committee on Appropriation, Hon. Mustapher Dawaki; SSA
National Assembly, Senate, Senator Ita Enang; Chairman Senate Committee
on Appropriation, Senator Danjuma Goje; President Muhammadu Buhari
(sitting); Vice President Yemi Osinbajo; Chief Whip House of
Representatives, Hon. Doguwa and the Chief of Staff to the President,
Mallam Abba Kyari during the signing ceremony of the 2018 Appropriation
Bill into law at the State House, Abuja. Photo by Abayomi Adeshida
The AON Chairman, Capt. Noggie Meggisson, who gave the commendation in a
statement issued on Wednesday in Lagos, expressed optimism that the
domestic airlines were included in the VAT exemption.
Meggisson said the decision taken at the Federal Executive Council (FEC)
meeting on June 6 presents a veritable opportunity for the aviation
industry to immediately take advantage of the decision to expedite a
White Paper to that effect.
He said: “We as Nigeria have been crying out for decades now for
discussions on the immediate removal of VAT from domestic air
transportation in line with global best practice, but we have barely
been heard over the years.
“VAT is an added burden on our passengers who have limited disposal
funds and have reached their elastic point in this difficult time in the
nation’s economy.
“This adversely affects the sector by reducing the number of those who
can afford to travel by air due to high fares in this tough economic
time.”
Meggisson said a recent report from the Federal Airports Authority of
Nigeria (FAAN) showed that passenger traffic dropped by 27 per cent in
2017 and by another seven per cent in the first quarter of 2018.
In all, a total of 34 per cent drop was recorded in passenger traffic
within a span of one year.
According to him, domestic air transportation in Nigeria is the only
mode of commercial transportation that pays VAT.
“Road, rail, marine and even foreign airlines operating in Nigeria don’t
pay VAT in their home country or in Nigeria with reference to an
information circular by the Federal Inland Revenue Service (FIRS) which
grants them VAT exemption (Information No.: 9701; Circular Dated Jan. 1,
1997); Part L (b) No. 8.
“VAT on commercial air transportation is a huge departure from what
obtains worldwide and an increased burden on the Nigerian travellers.
“Ghana, Benin Republic, Togo and Cote d’Ivoire located next door to us
have all abolished VAT for air transportation.
“The recent decision by the Federal Government to remove VAT from
domestic Air transportation will go a long way to bring succor to
groaning Nigerian travelers to be able to afford to travel by air,” he
said.
The AON chairman added that the growth in demand for domestic air travel
would lead to the creation of jobs by the whole air transport service
chain (airlines, airports, ground handlers and catering companies) as
well as increase revenues for government.
Meggisson said :“This is a step that Ghana took over a year ago and the
benefits are there for all to see today as Accra is fast becoming the
aviation hub for West Africa.
“AON would therefore like to use this medium to once again thank the
president and his administration for coming to the aid of domestic
airlines by the recent Executive Order to remove VAT from all forms of
shared transportation.
“It is our prayer that the president will go a step further to encourage
the National Assembly to pass this Executive Order into law as quickly
as possible.
“This will go a long way to encourage more Nigerians to fly and put the
airlines on a positive footing to grow the economy and contribute to the
Gross Domestic Product (GDP).” (NAN)
WAC/ASO/BOLA/AFA
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
Read more at: https://www.vanguardngr.com/2018/06/airline-operators-commend-buhari-removing-vat-transportation/
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