Airline Operators Laud FG On Duty Waiver

Airline Operators of Nigeria (AON) has expressed satisfaction with federal government’s decision to stop payment of custom duties on aircraft, aircraft parts and other related taxes as contained in the 2013 Appropriation bill.

The chairman of AON, Dr Steve Mohunwa who was speaking in an interview with newsmen said it was a positive development, adding that the airlines had been calling for the removal of the custom duties in the past five years.

“We have got a break through. We thank the President of Nigeria and the Minsiter of Aviation for making it possible. Some years ago, we got a waiver from the former President, Chief Olusegun Obasanjo but when we took it to customs they rejected it.

It would be recalled that the Managing Director of Aero Contractors a few weeks ago painted a gory picture of high cost of running an airline in Nigeria due to custom duties and other taxes paid to government agencies.

“If you buy an aircraft, you pay duty on it and rates are quite high. This is what shoots up the fares. For example, we imported a VIP helicopter earlier this year. The value of that helicopter is $4 million (640,000,000). We ended up paying N143 million to clear it from customs. When it was cleared it went for stamp-duty and we paid a couple of millions of naira. For the inspection after the assembling we paid NCAA another N1 million. We have not flown one hour on the helicopter, but we have alredy spent N200 million.

“Now, you buy a ticket to travel by air, the airline is going to pay passenger service charge to FAAN, you are going to pay VAT from the ticket, “ he said.

Also, speaking, the Rector of International Aviation College, Ilorin, Capt. Fola Akinkuota said that removing custom duties and other charges was the only way the government could help Nigerian airlines succeed.

Reward Akwu