The Government has given reprieve to airline operators in Nigeria by granting zero per cent payment on Duty and VAT on all commercial aircraft spares imported into the country. This is to help the operators mitigate their huge overhead.
The clarification on the Zero Duty and Value Added Tax (VAT) was contained in a letter signed by the Nigeria Customs Service and made available to Airline Operators of Nigeria (AON).
Chairman of the AON, Captian Nogie Meggison who made available the Customs letter to aviation correspondents said operators were “full of thanks to the government for graciously identifying with the pains of the Nigerian travelling public by extending its support for commercial airlines in the country and re-affirming 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.”
Part of the Customs letter read: “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.”
“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.”
Airline operators had consistently called on the government to jettison it’s stance of charging VAT and duty on aircraft spares.
Meggison noted that the unprecedented move was a welcome development and a strong testament to the commitment 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.
