New Tax Laws Will Ease Airlines' Burden -- Presidential Panel

Contributing sentiments towards policy:

57% : " The Committee also clarified that the new law restores full value-added tax (VAT) neutrality for airlines.
56% : The new tax laws are not the problem, they are a critical part of the solution."
53% : The Presidential Fiscal Policy and Tax Reforms Committee has assured that the new tax laws will support and ease the burden on airline operators rather than worsen their situation, contrary to fears expressed within the aviation industry.
51% : In addition, several profit-based levies including the Tertiary Education Tax, NASENI, NITDA and Police levies have been harmonised into a single Development Levy, reducing complexity and improving certainty for taxpayers.
50% : Importantly, the tax harmonisation provisions in the new laws mean the situation can only improve, not worsen, from 2026." In its conclusion, the Committee reaffirmed that the new tax laws were designed to strengthen the aviation sector rather than stifle it.
50% : "Overall, the new tax laws provide a strong legal and policy framework to resolve long-standing tax challenges in the aviation sector, reduce operating costs for airlines, and ensure minimal impact on passengers," it said.
48% : "To put this in context, on a $50 million aircraft lease, an airline currently pays $5 million in withholding tax, which is non-recoverable and directly increases operating costs," the Committee explained.
47% : In a statement on Monday, the Committee acknowledged the challenges confronting the aviation sector, including multiple taxes, levies and regulatory charges, but said the reforms were designed to resolve long-standing structural problems that have driven up operating costs for years.
46% : " The Committee added that the new law provides a framework to reduce corporate income tax from 30 percent to 25 percent, a change that will benefit airlines.
45% : "Contrary to the claim that the new tax laws will hurt the industry, the reform is part of the solution, not the source of the problem," the Committee chaired by Taiwo Oyedele stated.
44% : "If the current engagement with industry stakeholders is sustained, the remaining non-tax issues will be resolved sooner rather than later," it added.
43% : "Several long-standing tax issues driving costs in the sector have been resolved in the new tax laws or are being structurally addressed.
42% : " According to the Committee, one of the most significant changes under the new law is the removal of the 10 percent withholding tax on aircraft leases, described as the single biggest tax burden on airlines.
42% : While acknowledging the reality of multiple charges imposed on airlines by different agencies, the Committee emphasised that such levies were not created by the new tax laws.
39% : The tax has now been replaced with a rate to be determined by regulation, providing legal grounds for either a full exemption or a much lower rate.

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