Aviation stakeholders are advocating for a reconsideration and cessation of taxes and numerous charges imposed on airlines and ancillary service providers.
They argue that such measures are hindering the government’s efforts to revitalize the aviation sector and attract foreign investments.
The discussion took place during the Business Breakfast Meeting at the 3rd Quarter of the Aviation Safety Roundtable Initiative in Lagos.
The meeting centered around the theme, ‘Nigerian Aviation Sector Charges, Duties, and Tariffs: Truly Exorbitant’?
Various speakers concurred that the industry is burdened with excessive and often unregulated taxes.
Reference was made to the International Air Transport Association’s recent assertion that Abuja and Lagos Airports rank as the world’s most expensive.
President of the Aviation Safety Roundtable Initiative, retired Air Commodore Ademola Onitiju, retired, expressed concern in his welcome address, stating that despite the sector’s pivotal role in the country’s socioeconomic development, it is not receiving adequate attention.
“The Nigerian government must be deliberate in the creation of the needed conducive environment to provide a level-playing field, strengthen local airlines and encourage serious investors to come into the sector to boost capacity and international competitiveness”.
The Lead Speaker, Dr. Gbenga Olowo, highlighted the multitude of charges imposed on flight tickets, including fuel tax, landing, parking, passenger service charges, totaling around 14.
He emphasized that these charges directly contribute to higher airfares, making air travel costlier for passengers.
He urged the government to prioritize the industry to unlock its economic potential.
“There is nothing you don’t pay, Government should please aviation a priority, look into the area where the shoe is pitching us and for God sake attend to the issue”.
Chairman of the Presidential Committee on Fiscal Reform and Tax Policies, Mr. Taiwo Oyedele, assured the government’s commitment to supporting the sector in overcoming these challenges.
“We must address the burden of multiple agencies, complex paper work and a plethora of taxes, levies, charges”.
Recommendations to address these issues include advocating for a tax policy, strategic planning, and the urgent reassessment and streamlining of charges by regulatory bodies and government agencies to enhance the industry’s viability.