CPPE urges FG to review 35% tax burden on Airlines

The Centre for the Promotion of Private Enterprise (CPPE) has called for an urgent review of taxes amounting to 35 percent of airline revenues.

In a statement released on Sunday by the Chief Executive Officer of the CPPE, Dr. Muda Yusuf, the policy think-tank commended President Bola Ahmed Tinubu for approving a 30 percent discount on outstanding debts owed by Nigerian airlines.

The organization however noted that while this intervention provides timely relief for operators facing unsustainable costs, it remains a short-term solution to deeper structural challenges.

Dr. Yusuf highlighted that the current burden of multiple fees imposed by agencies such as the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA) is excessively high.

According to industry estimates, these charges account for over one-third of total revenue, a figure the CPPE described as incompatible with the thin profit margins inherent in the aviation business.

The CPPE emphasized that the sector is too strategic to be weighed down by such intense cost pressures, citing its role in economic connectivity, trade, and national integration.

The statement further noted that air travel has become a critical necessity for Nigerians due to safety concerns surrounding road transportation, yet the industry continues to suffer from a high mortality rate among domestic carriers.

The organization listed several burdensome charges requiring immediate moderation, including ticket and cargo sales charges, landing and parking fees, aircraft inspection fees, and import duties on spare parts.

Dr. Yusuf argued that a fragmented and heavy tax regime undermines the sustainability of operations and could eventually impact safety standards if financial pressures on operators become too severe.

The CPPE urged the Federal Government to move beyond debt relief toward a comprehensive reform of the aviation cost environment.

The statement concluded that streamlining these charges is essential to enhance the competitiveness of domestic airlines, reduce ticket prices for citizens, and ensure the long-term viability of the sector.