FG Urged to Save Aviation Sector from Multiple Taxes

To end the current low passenger capacity and the high cost of airfares, the federal government  has been advised to step in to save the aviation sector by moderating the over 20 taxes paid on every ticket purchased by travellers as well as reign in the astronomical rise in the foreign exchange regime.

Chairman of United Nigeria Airlines, Professor Obiora Okonkwo, gave the advice while speaking on Arise TV Programme, PrimeTime, said airlines operating in Nigeria were overburdened by multiple taxation.

He also disclosed that the forex regime, which stood at about N1,605.00 to one dollar, is impacting negatively on local airlines as operators are forced to buy spares and fix their aircraft in dollars even without increases in the cost of such spares abroad.

According to Okonkwo, government must act fast to salvage the industry as the forex regime threatens to push up ticket prices further. He called for a review of taxes on each air ticket as some of them are repetitions.

“As long as the government does not understand the importance of aviation and make the appropriate investments in the sector, investments like creating the enabling environment for the aviation sector to survive, which means access to single digit capital, reduction in all the charges and taxes that impact negatively on air travel business, we will still see increases in ticket prices.

“We just came back from South Africa on an IATA (International Air Travel Association) conference and it is on record that Nigeria still has the highest cost of aviation services. Every airline here pays higher than what is even paid by their peers in the western world, and we the local operators are victims of these,” he said.

Noting that the taxes are just too many, the United Nigeria Airline boss said: “For every ticket that we sell, we have about 20 to 22 deductions. Some are even repetitions.”