The Chief Executive Officer (CEO) of Air Peace, Allen Onyema has raised an alarm that if President Bola Ahmed Tinubu goes on to implement the new tax reform laws by January 1, 2026 as planned, Nigerian airlines would go down in three months.
Speaking on Arise Television programme on Sunday, Onyema disclosed that the new tax laws have brought back charges that the 2020 tax laws expunged.
He said the taxes include customs duties on imported aircraft, aircraft parts, and engines, as well as VAT on tickets.
He said they will further burden airlines with additional costs.
“There is VAT now on the importation of aircraft. So if you buy an aircraft of $80 million, you are supposed to pay 7.5 percent of $80 million,” he said.
“Do the mathematics. From money borrowed from the bank, interest rates are 30 to 35 percent. So, you bring in spare parts, you pay 7.5 percent on your spare parts.”
The Air Peace CEO said the airline industry cannot withstand additional burdens under the new tax laws.
“If we implement that tax reform, Nigerian airlines will go down in three months,” he said.