Senate Moves to Save Airlines; Directs CBN On What To Do




The Nigerian Senate on Tuesday made resolutions to save the airlines from the challenges confronting them which includes multiple taxation
 
The development followed Senator Adamu Aliero seeking the leave of the Senate to present a motion on the Call by Airline Operators to suspend operations.

Senator Smart Adeyemi who supported Aliero's motion said: "Mr. President, I rise to support the motion by Senator Aliero. Aviation is key to the development of our economy. Other countries gave bailout fund to their aviation sector.

"If airline operators say they can't clear their goods because of VAT, then the government needs to look into that. The Federal government should allow the aviation sector to be tax free for at least three (3) years. I so submit." 

The Senate subsequently resolved to call on the Federal Government to fully implement the Executive Order on Zero Customs Duty and Value Added Tax (VAT) on importation of commercial aircraft.

It was also resolved that Central Bank of Nigeria will be requested to make foreign exchange readily and easily accessible for the sector and make interest rate a single digit for airlines which will reduce the cost of capital.

The Senate will also call on the Federal Government to eliminate multiple charges on airlines.

The Senate resolved to direct the Ministry of Aviation to allocate more entries and frequencies to domestic airlines on international routes.

They called for creation of a more business friendly environment for the aviation sector.

The Senate conclusively urged the Federal Government to upgrade decaying infrastructures in the airport.

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