IATA, FG clash over new Tax Reform Acts

By Dickson Omobola

International Air Transport Association, IATA, has condemned Federal Government’s caller Tax Reform Acts, saying the argumentation violates International Civil Aviation Organisation, ICAO, rules and Economic Community of West African States, ECOWAS, regulations, which prohibit subordinate states from imposing taxes connected aerial passengers and goods.

Although the national authorities insisted that the recently introduced taxes, which would instrumentality effect connected January 1, 2026, would beryllium beneficial to the country’s aerial transport sector, IATA demanded that it beryllium readjusted to align with treaties signed by Nigeria.

The disagreement connected the caller argumentation came to the fore during a Business Webinar themed: ‘Nigeria Tax Act (2025) and the Aviation Industry,’ held by Aviation and Allied Business and the Federal Inland Revenue Service.

Speaking astatine the meeting, Area Manager, West and Central Africa, IATA, Dr Samson Fatokun, argued that aviation was a planetary concern and the caller taxes were contradictory to planetary treatise to which Nigeria is signed.

Fatokun said, “Aviation is simply a planetary business. There are treatises signed by antithetic countries to modulate the industry. In November 2024, Nigeria and different West African countries signed to trim the precocious outgo of question successful the region. We cannot motion specified a determination enactment and our ain authorities is different.

“We request to readjust our taxation laws to acceptable into ICAO and ECOWAS regulations, to which we are signed. If not, it volition beryllium contradictory. The Nigerian taxation authorities request to beryllium successful the cognize of the treatises that usher an planetary industry.”

Meanwhile, Assistant Director, Nigeria Revenue Service, Mrs Nkechi Umegakwe, maintained that the caller reforms would boost authorities gross done measures specified arsenic VAT recovery, improved currency travel for businesses, and stronger compliance via integer invoicing and tracking.

According to her, it was mandatory for hose operators, including different allied businesses successful the aviation sector, to present wage the Value Added Tax, VAT.

She said: “VAT is simply a depletion taxation connected the goods and services to beryllium borne by the extremity users and not the suppliers. Once the caller taxation reforms go operational, immoderate you bring successful arsenic an airline, including aircraft, engines, spare parts and others, you indispensable wage VAT connected them.

“Understanding the implications of caller taxation instrumentality reforms is captious for businesses. It promotes voluntary compliance, reduces vulnerability to penalties, safeguards firm reputation, and supports uninterrupted operations crossed the sector.”

Meanwhile, Minister of Aviation and Aerospace Development, Mr Festus Keyamo, successful his remarks, said helium had made a lawsuit for aviation to beryllium exempted from the caller taxes.

Represented by Director of Air Transport Management, Mr Mohammed Tijani, helium said: “The aviation manufacture has its peculiarities. Although taxation has travel to stay, the aviation sector, done the minister, has made a lawsuit for the industry, and it is inactive being considered.”

The station IATA, FG clash implicit caller Tax Reform Acts appeared archetypal connected Vanguard News.