Government officials have imposed a $4,000 luxury tax on private
jet owners and operators across the country in a bid to cash in on one
of the-fastest growing aviation sectors in the world.
Nigeria’s private jet industry is one of the more dynamic anywhere on
earth, as over recent years, the country has become one of the world’s
fastest growing private jet markets with politicians, church leaders and
wealthy oil magnates increasingly opting for personal aircraft.
According to industry analysts Nigeria and China constitute two of the
fastest growing private jet markets in the world.
Between March 2010 and March 2011, a few wealthy Nigerians spent at
least $225m acquiring private jets. One of the biggest buyers are
Nigeria’s new brand of religious leaders or pastorprueners, with several
of them owning fleets.
Looking to raise revenue from this lucrative market, the Nigeria
Civil Aviation Authority (NCAA) has directed all private jet owners and
operators to pay tax for every flight departure within the country.
Under the terms of the new directive, Nigerian-registered private jets
would pay the sum of $3,000 for every departure, while foreign
registered ones would pay $4,000 per departure.
Captain Fola Akinkuotu, the NCAA director general, said:“In
compliance with the provisions of Section 30 (2) (q) & (s) of the
Civil Aviation Act of 2006, the authority hereby orders all foreign
registered aircraft engaging in non-scheduled operations shall forthwith
pay $4,000 as fees under the provisions of the law set out above for
every departure, except round trips without changes in passenger
manifest, or return ferry. Such fees shall be paid in advance and prior
to departure.
“All Nigerian-registered aircraft engaging in non-scheduled
operations shall forthwith pay $3,000 as fees under the provisions of
the law set out above for every departure, except round trips without
changes in passenger manifest, or return ferry. Such fees shall be paid
in advance and prior to any departure.
His memo added that the order shall be effective immediately and
failure to comply shall result in denial of operations and or
privileges. Already, the directive is generating controversy in the
aviation sector, with some operators arguing that the levies are illegal
and as such, they will not pay it.
In response the NCAA has filed a suit at the Federal High Court in
Lagos, challenging the reluctance of foreign and locally-registered
aircraft operators to pay the levies. However, the affected airlines and
aircraft operators under the aegis of the Airline Operators of Nigeria
have described the policy as draconian and tantamount to double
taxation.
If the courts rule in favor of the NCAA, Nigeria can expected to
generate as much as $1.4m annually from the new luxury tax.
Pastorprueners and business moguls are expected to be the main payers of
the new tax.
In March last year, David Oyedepo, the owner of Winners Chapel rated
by Forbes as the world’s richest cleric with an estimated wealth of
about $3000m acquired a Gulfstream V jet for $30m. Pastor Oyedepo owns a
private collection of four planes including two Gulfstream planes and a
Bombardier Challenger aircraft.
Also, in December last year, Pastor Ayo Oritsejafor, the founder of
the World of Life Bible Church and the president of the Christian
Association of Nigeria was bought a 10-seater Bombardier Challenger jet
as a birthday present worth about $50m. In 2010, Aliko Dangote, Africa’s
wealthiest man acquired a $45m Bombardier jet as a gift to himself on
his 53rd birthday, while oil magnate Mike Adenuga purchased a Bombardier
Global Express XRS.
Original article: http://www.nigerianwatch.com
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