By Eteteonline
Nigeria’s recently passed tax laws are causing new worries, with the aviation industry warning of dire repercussions for travelers.
According to Allen Onyema, Chairman and CEO of Air Peace, if the tax reform rules are put into effect, airlines will fail within three months. According to him, charges that were eliminated by the 2020 tax laws have been reinstated by the new tax laws.
These include 7.5% value added tax (VAT) on tickets, new airplanes, and aviation parts and engines. During the COVID-19 pandemic in 2020, the charges were first put on hold.
According to Onyema, airlines will incur greater expenditures when these fees are reinstated in 2026. Domestic economy fares may increase from N350,000 to more than N1 million as a result of this action.
Onyema’s argument that the tax reforms, which take effect on January 1, 2026, will raise airfares has been refuted by the federal government.
Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated on Monday, December 29, that the new tax rules have addressed or are systematically addressing a number of long-standing tax concerns that have been increasing prices in the industry.
According to Oyedele, “Contrary to the claim that the new tax laws will hurt the industry, the reform is part of the solution, not a source of the problem. Several long-standing tax issues driving costs in the sector have been resolved in the new tax laws or are being structurally addressed.”
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