The Nigerian Senate is set to call on the Federal Government of Nigeria to implement the executive order on Zero Customs Duty and Value Added Tax (VAT) on importation of commercial aircraft in the nation.
This was discussed as the National Assembly resumes plenary today Tuesday after a five-week break during which Ministries, Departments and Agencies (MDAs) defended their 2021 budget estimates before the committees of the federal parliament.
Senator Adamu Aliero, representing Kebbi Central District cited Order 42 to seek the leave of the Senate to present a motion on the Call by Airline Operators to Suspend Operations owing to hard challenges confronting them which includes multiple taxation, payment of import duty and commercial taxes.
Supporting the motion, Smart Adeyemi representing Kogi West Senatorial District said, “If airline operators say they can’t clear their goods because of VAT, then the government needs to look into that. The Federal government should allow the aviation sector to be tax free for at least three (3) years. I so submit.”
The Senate then resolved to call on the Federal Government of Nigeria to implement the executive order on zero customs duty, as well as request the Central Bank of Nigeria to make foreign exchange readily and easily accessible for the sector and make interest rate a single digit for airlines which will reduce the cost of capital.
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The Senate will further call on the Federal Government to eliminate multiple charges on airlines, direct the Ministry of Aviation to allocate more entries and frequencies to domestic airlines on international routes, create a more business friendly environment for the sector and urge the Federal Government to upgrade decaying infrastructures in the airports.
