Abuja: Investors in Nigeria’s domestic airline industry yesterday got a major reprieve as President Muhammadu Buhari issued an Executive Order for the removal of Value Added Tax (VAT) from “All Forms of Shared Transportation”, including air travels.
Domestic airline owners had halted further payments of VAT on their services to the Federal Government from June 14, 2018 as part of measures to compel it to abolish all existing dichotomy in tax regimes between foreign and local airlines operating in the country.
Chairman of the Airline Operators of Nigeria (AON), Capt Nogie Meggison, told aviation correspondents on Wednesday that news of the VAT abolition was received with a lot of excitement by local airline owners.
“The AON would like to thank President Buhari and his administration for coming to the aid of domestic airlines with the recent Executive Order to remove VAT from all forms of Shared Transportation,” Meggison said.
“We 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.