AON Faults NCAA Over Debt Allegations, Seeks Aviation Tax Reforms

AON Faults NCAA Over Debt Allegations, Seeks Aviation Tax Reforms

The Airline Operators of Nigeria, AON, has dismissed reports suggesting that domestic airlines owe the Nigeria Civil Aviation Authority for regulatory services.

The body described the claims as misleading and an attempt to regulate operators through the media.

In a statement, the association insisted that all NCAA services to airlines are paid for in advance under a strict cash-before-service policy covering aircraft inspections, licence validations and other regulatory approvals.

AON clarified that the issue in dispute is the five percent Ticket Sales Charge imposed on passengers, and not unpaid regulatory fees.

The operators explained that the aviation industry is battling severe financial pressure caused by the rising cost of Jet A1 fuel and global economic shocks linked to the Iran-Israel-United States conflict.

According to the association, airlines had appealed to the Federal Government for temporary relief on statutory charges, with President Bola Tinubu already approving a 30 percent concession while discussions continue.

The airline operators also renewed calls for the Federal Government to amend the Civil Aviation Act to allow the NCAA collect its charges directly from passengers instead of through airlines, arguing that carriers should not continue to serve as collection agents while also bearing banking and transaction costs.

The association further described the five percent Ticket Sales Charge as an outdated levy introduced more than four decades ago, warning that multiple taxes, fees and charges imposed by aviation agencies are threatening the survival of domestic airlines.

AON says despite the challenges, it remains committed to working with government and stakeholders to sustain growth in Nigeria’s aviation sector.

Reporting By Nosa Aituamen

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