House to probe dormant VAT waiver for airlines

The House of Representatives is to probe the non-implementation of waiver of the payment of Value Added Tax (VAT) granted Nigerian Airlines two years ago.

The removal of VAT for domestic airlines was approved in 2018 in an Executive Order.

Minister of Aviation, Senator Hadi Sirika had prior to the increase in VAT from five per cent to 7.5% this year, assured that the Ministry was “liaising with relevant MDAs to ensure the smooth implementation of the Presidential Order”.

Chairman, House of Representatives Committee on Aviation, Hon. Nnolim Nnaji in a report on the outcome of the recently concluded Public Hearing on six civil aviation bills, said the House of Representatives would look into the issue of the VAT removal.

He specifically disclosed that his committee would interface with the Nigerian Customs Service (NCS) on the non-implementation of the duty extension granted to airlines.

Nnaji said, “As parliament, we are going to look into these demands and more especially to find out why the Nigeria Custom Service would not respect the President’s Executive Order on duty exemption and other palliatives meant to lighten the burdens of the airlines.”

“The industry is in dire need of urgent intervention to save it from imminent collapse.”