Don't Miss


Home   >   Business   >   Industries   >   Aviation   >   Senate orders NAMA to suspend private jet tax

Senate orders NAMA to suspend private jet tax

By on November 27, 2013

The Senate on Monday ordered the Nigerian Airspace Management Agency to suspend the newly introduced $3,000 luxury tax for owners of private jets.

The directive came after the Senate Committee on Aviation met with the Airline Operators of Nigeria and a team of officials from the Nigerian Civil Aviation Authority, Nigeria Meteorological Agency and NAMA.

The NCAA, through NAMA, last week commenced the collection of the $3,000 luxury tax from foreign-registered private jet owners and $2,500 from Nigerian-registered private jets.

The Senate, it was learnt, asked NAMA to follow the normal procedure before introducing the new charges.

NAMA, in a statement, confirmed the development.

It said in the statement by its General Manager, Public Affairs, Mr. Supo Atobatele, that the agency had resolved to meet with officials of the non-scheduled local airline operators over the newly introduced charges.

It said a proposed meeting with the operators would hold in Abuja Tuesday, next week.

The statement also quoted the Managing Director, NAMA, Mr. Nnamdi Udoh, as saying that the meeting would “afford parties an opportunity to tackle the grey areas resulting from the newly introduced charges of $3,000 for foreign registered aircraft and $2,500 for Nigerian- registered ones.”

The senators described the issues at stake as a “family affair” directing that the parties should hold a meeting to resolve all contentious issues amicably and chart a new course to move the industry forward.

The NCAA had said that the charges were in compliance with section 30(2) (9) and (c) of the Civil Aviation Act of 2006.

Atobatele had said the charges were jointly collected on behalf of all agencies providing services at Lagos, Abuja and 11 other terminals across the country.

He added, “Today, when a non-scheduled airline pays this new charge, it does not need to pay other separate charges to any of the service-providing agencies anymore.  The new charges constitute a luxury tax, which is acceptable internationally for the type of services offered by private jet operators, and it is used to maintain highly exclusive facilities provided at these luxury terminals.”

Over 20 Nigerian private jet operators had embarked on an indefinite strike, following the imposition of the $3,000 luxury tax by NAMA.

The Federal Government plans to rake in N32bn ($201.2m) annually from the charter aircraft operators.

Private jet owners, consisting of companies, businessmen, government agencies and clergymen, will be expected to part with $1.4m annually, following the new tax scheme.

Some private jet operators in the country are Skypower Express Airways, Gyro Air, Skyjet Air, Skybird Air, Kings Air, Jedd Air, Izy Air, Topbrass Air, Air Ambulance, Pan African Air and Weaslink Air.

Nigeria is said to be one of the leading private jet markets, competing with the US, UK and China as countries that top bombardier aircraft orders.

In the five years leading up to 2012, 120 private jets worth a total of $6.5bn were imported into Nigeria, bringing the country’s private jet fleet to about 200 aircraft.

The country’s luxury charter market is currently worth $3.5bn, making it Africa’s largest private jet market.

 

 

[Punch]