Airline operators on Friday said passengers pay about 12.5 per cent in tax charges on every ticket, accusing revenue agencies of harassing members to pay a tax that the government has waived.

The operators raised the complaints at a Tax Ombud town hall with stakeholders in Lagos. Other private sector leaders also lamented over-taxation, despite government policies to harmonise taxes.

The event, themed ‘Promoting fairness in tax and revenue administration in Nigeria,’ drew business groups, operators and tax officials.

The Chief Executive Officer of Air Peace and Vice President of the Airline Operators of Nigeria, Mr. Allen Onyema, who was the guest of honour, said the sector faces collapse without urgent intervention.

Onyema said, “The airline industry is going comatose except something is done.”

He said the 7.5 per cent Value Added Tax and a five per cent charge from the Nigerian Civil Aviation Authority pushed the burden onto passengers.

Onyema said, “On the issue of 7.5 per cent VAT on tickets, plus five per cent NCAA, already the passenger has 12.5 per cent.”

He said revenue agencies had continued to pursue airlines over 7.5 per cent despite assurances.

Onyema said, “I’m surprised that our members are being harassed.”

The airline chief said the sector also struggles under a heavy load of other charges.

Onyema said, “Remember, these airlines have 154 charges to contend with.”

He said the International Air Transport Association had told operators that Nigeria was the worst place to run an airline and compared it to Afghanistan.

Onyema said, “It’s not a good thing to compare our country to a war zone.”

He blamed the cost of operations and the tax burden for the collapse of airlines in the country.

Onyema said, “That is why over 80 airlines have gone down in this country.”

He said aviation fuel prices have worsened the strain, as airlines cannot not raise fares without losing passengers. He said the cost of fuel rose from N900 to more than N2,000 per litre, and operators have once bought it at N3,500.

Onyema urged the Tax Ombud to take the operators’ concerns to President Bola Tinubu, saying the President was unaware of the extent of the problem. He said the President had earlier moved to remove a four per cent Free on Board charge and a seven per cent surcharge on airlines after he raised the matter.

Onyema said, “The moment this president knows, it get resolved.”

He argued that the high tax burden threatens jobs and the affordability of air travel.

Onyema said, “When the airlines suffer, jobs will be at risk.”

He said the operators do not want to deprive the government of revenue but want the taxes reduced and harmonised.

The Tax Ombud and Chief Executive of the Office of the Tax Ombud, Dr John Nwabueze, said the Federal Government’s tax reforms aim to build a fairer revenue system. He commended the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for driving the reforms.

Nwabueze said, “The comprehensive tax reforms being undertaken by this administration are an important component of their vision, aimed at building a more efficient, equitable, transparent, and sustainable revenue system.”

He said the office would resolve taxpayers’ complaints through mediation and charge no fees.

Nwabueze said, “Our services are free of charge to Nigerians.”