Airlines task FG on multiple taxation, charges
Airlines operators in Nigeria are calling on the Federal Government to reduce some of the taxations and charges leveled on them in order for them to be able to operate profitably.
They have argued that flying within the country’s airspace was becoming very expensive and unbearable, and this was adversely affecting their operations.
MARKETING EDGE gathered that there are six charges and rates from the Federal Airports Authority of Nigeria (FAAN), alone, including Landing and Take-off charge, Passengers Service charge, Avio-Bridge charge, Aviation fuel charge, Port charge, and Parking and Housing fees, while the Nigerian Airspace Management Agency (NAMA) is responsible for the Terminal Navigational Charge (TNC) paid by airline operators that use the agency’s navigational aids.
For the Passengers Service Charge, airlines are expected to pay $25 for each international passenger on their flights and N350 for domestic passengers. Meanwhile, Avio-Bridge charges include a $50 for a DC 10 aircraft type and $40 for an aircraft that is lesser than a DC 10 aircraft.
On its part, the Nigerian Civil Aviation Authority (NCAA) collects a five percent (5%) Ticket Sales Charge (TSC) for each ticket that is sold to a passenger by the airlines.
Business Development Manager, Medview Airline, Alhaji Nsalah Na-Allah who spoke on behalf of the airlines stressed on the need for the Federal Government to reduce some of the taxes and charges leveled on the airlines, adding that multiple taxation was a burden on the industry.
“You don’t expect that flying within my country, you have to pay to the Nigerian Airspace Management Agency (NAMA), we are already paying 5% to NCAA which is being shared amongst all the service providers that has something to do in aviation, they have a certain percentage that they collect, so why should I be asked to go and pay another charge and the charges are so high” he said.
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