Aviation Experts Worry Over New Tax Reforms Impacting Aircraft and Engines

Aviation stakeholders have expressed concerns over the Federal Government's new tax reform affecting commercial aircraft, engines, and other aviation assets, set to take effect in 2026. During a virtual business webinar organized by the Aviation Allied Business Journal and the Nigeria Revenue Service (NRS), Assistant Director of the NRS, Mrs. Nkechi Umegakwe, revealed that the reform would remove the exemption of Value Added Tax (VAT) on aviation assets used in the industry.

The reform implies that Nigerian companies engaged in airline transportation and other aviation-related businesses will now be subject to VAT like any other sector. This change is expected to impact the cost structure of the aviation industry, with implications for both businesses and consumers.