Airline operators get zero duty, VAT exemption on aircraft spares
Wed Jul 13, 2016 09:33:am National
1.8K By sosa hills
The Federal Government has approved the implementation of zero-duty and free Value Added Tax (VAT) for commercial airplanes and their spare parts.
The lifeline for the near distressed sector was communicated to the Airline Operators of Nigeria (AON) by the Federal Government through the Nigeria Customs Service (NCS).
The NCS told the operators in a letter dated June 20, 2016, that the Federal Ministry of Finance has endorsed the implementation of the fiscal policy, which is coming three years after the policy was first mooted.
The letter read in part: "We (NCS) are directed to inform you (AON) that by virtue of the Federal Government's 2013 Fiscal Policy measures, Ref No. BD.12237/S.1008/T/11 dated 15th January, 2013, all commercial aircraft and their spare parts imported for use in Nigeria shall attract import duty rate of zero percent and zero percent VAT respectively."
The NCS further also quoted the Minister of Finance, through a letter Ref. No. BD/FP/TT/50/1/113 dated 20th March, 2015 that approval for the implementation of the Economic Community of West Africa (ECOWAS) Common External Tariff (CET) 2015-2019 and 2015 Fiscal Policy measures (National List) confirmed the extension of the 2013 Fiscal Policy measures."
An elated AON on Tuesday confirmed that the Federal Government has approved the implementation of zero duty and VAT payment on the importation of commercial airplanes and their spare parts as a way of alleviating the cost burden and ensuring safe flight operations.
In a statement signed by its Chairman, Captain Noggie Meggison, the association appreciated the governments' efforts at addressing the plight of commercial airlines in the country.
But a source in the Ministry of Aviation said that there was no official statement on the matter by the ministry.
At various meetings with the Federal Government, local airline operators had raised the issue with the Minister of Aviation. Although the minister was silent on the issue, the operators accused the NCS of refusing to implement the duty-free policy.
The AON in its statement, however, thanked the Federal Government "for keying into the importance of aviation as one of the key drivers of the economy and its critical role of making Nigeria the pivot air transportation in Africa.
"We also commend the government for graciously identifying with the pains of the Nigerian travelling public by extending its support for commercial airlines in the country and reaffirming the zero duty and VAT payment on the importation of commercial airplanes and their spare parts as a way of alleviating the cost burden and ensuring safe flight operations.
Meggison said that the move was a demonstration of the commitment of the Minister of State for Aviation, Senator Hadi Sirika and the President Muhammadu Buhari led administration to the feelings of Nigerians and making good their promises to ensure that the aviation sector doesn't collapse.
He said: "AON would like to thank the Federal Government of Nigeria for giving a listening ear to our persistent calls
The lifeline for the near distressed sector was communicated to the Airline Operators of Nigeria (AON) by the Federal Government through the Nigeria Customs Service (NCS).
The NCS told the operators in a letter dated June 20, 2016, that the Federal Ministry of Finance has endorsed the implementation of the fiscal policy, which is coming three years after the policy was first mooted.
The letter read in part: "We (NCS) are directed to inform you (AON) that by virtue of the Federal Government's 2013 Fiscal Policy measures, Ref No. BD.12237/S.1008/T/11 dated 15th January, 2013, all commercial aircraft and their spare parts imported for use in Nigeria shall attract import duty rate of zero percent and zero percent VAT respectively."
The NCS further also quoted the Minister of Finance, through a letter Ref. No. BD/FP/TT/50/1/113 dated 20th March, 2015 that approval for the implementation of the Economic Community of West Africa (ECOWAS) Common External Tariff (CET) 2015-2019 and 2015 Fiscal Policy measures (National List) confirmed the extension of the 2013 Fiscal Policy measures."
An elated AON on Tuesday confirmed that the Federal Government has approved the implementation of zero duty and VAT payment on the importation of commercial airplanes and their spare parts as a way of alleviating the cost burden and ensuring safe flight operations.
In a statement signed by its Chairman, Captain Noggie Meggison, the association appreciated the governments' efforts at addressing the plight of commercial airlines in the country.
But a source in the Ministry of Aviation said that there was no official statement on the matter by the ministry.
At various meetings with the Federal Government, local airline operators had raised the issue with the Minister of Aviation. Although the minister was silent on the issue, the operators accused the NCS of refusing to implement the duty-free policy.
The AON in its statement, however, thanked the Federal Government "for keying into the importance of aviation as one of the key drivers of the economy and its critical role of making Nigeria the pivot air transportation in Africa.
"We also commend the government for graciously identifying with the pains of the Nigerian travelling public by extending its support for commercial airlines in the country and reaffirming the zero duty and VAT payment on the importation of commercial airplanes and their spare parts as a way of alleviating the cost burden and ensuring safe flight operations.
Meggison said that the move was a demonstration of the commitment of the Minister of State for Aviation, Senator Hadi Sirika and the President Muhammadu Buhari led administration to the feelings of Nigerians and making good their promises to ensure that the aviation sector doesn't collapse.
He said: "AON would like to thank the Federal Government of Nigeria for giving a listening ear to our persistent calls
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