New Tax Laws Aim to Support Aviation Sector, Not Increase Burden, Committee Say
The Presidential Fiscal Policy and Tax Reforms Committee has said Nigeria’s newly introduced tax laws are intended to strengthen the aviation industry rather than place additional pressure on operators.
In a statement addressing concerns raised by stakeholders, the committee explained that the reforms were carefully structured to remove long-standing cost drivers that have weighed heavily on the sector.
According to the committee, one of the key changes is the removal of the 10 percent withholding tax on aircraft leases, a levy that had significantly increased operating costs for airlines. The reforms also restore full value added tax neutrality for the industry, with guarantees that eligible VAT refunds will be processed, allowing operators to recover input taxes without prolonged delays.
The committee further noted that import duty exemptions on aircraft, engines, and spare parts have been retained, preserving a critical incentive that supports fleet acquisition, maintenance, and safety standards.
In addition, the new framework provides a clear pathway toward lower corporate income tax rates, which the committee said would improve the financial sustainability of aviation businesses and encourage long-term investment in the sector.
The committee emphasized that the overall objective of the reforms is to create a more predictable and supportive tax environment that promotes growth, competitiveness, and operational efficiency across Nigeria’s aviation industry.
