Why We Removed VAT From Air Fares – FG
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President Muhammadu Buhari
President Muhammadu Buhari says the recent decision by the Federal Government to remove Value Added Tax (VAT) from domestic air transportation is to make air travel more affordable to citizens.
The president said this when he inaugurated the new International Terminal of Port Harcourt Airport, Omagwa, Rivers, yesterday.
The president also explained that the government’s decision to charge zero VAT from domestic air transportation was in line with global best practices.
“Today’s commissioning is an example of Government’s deliberate policy to sustain the development of infrastructure for economic growth in all geo-political zones of the country,’’ he said.
The president said that the inauguration of the terminal was a respond to global trend in which aviation had became a catalyst for economic growth as a result of massive and speedy movement of persons, goods and services in a safe and secure manner,” he said.
He said that Nigeria having an advantageous central location within the sub-region and its desire to develop into a regional air transportation hub, must upgrade its facilities to take advantage of its assets.
President Buhari commended the people of the South South region and airport users for their patience during the period of the construction.
