Nigeria’s airline operators want to stop paying Value Added Tax, VAT.

On Thursday, the Airline Operators of Nigeria, the umbrella body of airlines in the country, told journalists in Lagos that its members will no longer pay Value Added Tax with effective from June 14.

The group said that the decision was taken after deliberations by the chief executive officers of airlines in the country.

It said, “the AON has resolved that effective June 14, 2018, its members shall cease to make VAT remittances as doing so is unfair, as some airlines are paying, while some other airlines are not paying domestic VAT charges.

“Also, Nigerian domestic airline travel is the only mode of transportation paying VAT in the country today as road, rail, marine and international airlines do not pay.”

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The group lamented that domestic airline travel was the only mode of transportation that was subjected to the payment of VAT, adding that its imposition was creating a suppression of domestic airline travel demand, resulting in the carriers not being able to optimally utilise their aircraft assets and more importantly, creating a market distortion.

It said, “The AON’s position is that the VAT on airline ticket sales for domestic carriers must be removed completely forthwith as road transportation, rail, marine and international air travel carriers are not subjected to VAT.

“Moreover, a situation whereby some airlines are paying VAT, while some other privileged airlines are not paying VAT, and the VAT which we pay is being used to subsidise our competitors against those that are making payment is unfair.”

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