- Continuous remittance of 5 percent Ticket Sales Charge and return of 7 percent VAT could harm indigenous airlines quickly.
- Dr. Allen Onyema, Chairman of Air Peace, expressed concerns about excessive taxes on Nigerian airlines.
- Onyema highlighted that the 5 percent TSC and Cargo Sales Charge negatively impact airline performance.
- He questioned why airlines with a maximum 5 percent profit must pay the same percentage to the NCAA.
- Onyema emphasized that ICAO principles focus on cost recovery, not profit.
- He warned that the new Tax Reform Act, effective January 2026, could severely impact airlines.
- The Act requires airlines to pay customs duties on imported aircraft and spare parts.
- Onyema praised Minister Festus Keyamo for addressing the issue before the Act’s implementation.
- He criticized the idea of a national carrier for Nigeria, predicting it would fail.
- Onyema noted challenges faced by Nigerian airlines on foreign routes due to aero politics.
Source: independent.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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