Senate Seeks Zero Duty On Aircraft Importation, Spare Parts
The Senate at plenary on Tuesday called on the Federal Government to fully implement the Executive Order on zero Customs duty and zero Value Added Tax on the importation of commercial aircraft and aircraft spare parts, as well as implement the removal of VAT.
The upper chamber also advised the Central Bank of Nigeria to make foreign exchange easily accessible for the aviation sector, and make the interest rate a single digit for airlines so as to reduce the cost of capital.
It called on the Federal Government to eliminate multiple taxes, fees and charges.
The Senate also mandated its Committee on Banking, Insurance and other Financial Institutions to facilitate review of the National Insurance Commission Act to grant the externalisation of insurance placements for domestic airlines.
It also urged the Ministry of Aviation to allocate more entries and frequencies to domestic airlines on international routes.
It also asked the ministry to create a business friendly environment for the air transport sector by fast-tracking the clearance of Aircraft On Ground spare parts.
The resolutions were reached following a motion considered on ‘The need to protect Nigerian indigenous airlines from extinction’, sponsored by Senator Adamu Aliero.
He expressed worry that despite the significant contributions of the Airline Operators of Nigeria to the growth and development of the Nigerian economy, domestic airlines were faced with multiplicity of challenges that threaten their continuous existence.