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Airlines Still Pay VAT 6 Months After Presidential Waiver

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Eniola Olayemi

 

Eniola Olayemi

 

More than six months after the Federal Government issued an Executive Order for the removal of Value Added Tax (VAT) from “All Forms of shared transportation”, airlines in the country are still burdened with VAT payment, Daily Trust can report.

The executive order was announced in June by the immediate former Minister Finance, Mrs. Kemi Adeosun, who said, “Majority of the provisions approved today are actually removing the tax burden and clarifying obsolete and ambiguous areas of tax. So for example for VAT there is to be an exemption for residential property, leases on rental, transport for the general public and life insurance.”

The approval came at a time airline operators had threatened to stop the remittance of VAT to the Federal Government, insisting that aviation is the only mode of transportation still paying the tax.

Immediately the EO was issued, the Airline Operators of Nigeria (AON) issued a statement commending President Muhammadu Buhari and the Federal Government for “listening to the cries of domestic airlines in the country”.

“We believe the decision by the government following the Federal Executive Council (FEC) meeting of June 6, 2018 presents a veritable opportunity for the aviation industry to immediately take advantage of the decision to expedite a White Paper to that effect”, AON chairman, Sir Nogie Meggison, said.

According to him, VAT adversely affects the sector “by reducing the number of those who can afford to travel by air due to high fares in this tough economic times.”

But six months down the lane, the expectation of airline operators has been dashed as the Federal Inland Revenue Service (FIRS), the agency empowered to collect tax on behalf of the government, still disturbs them for VAT.

From June till date, it is estimated that the airline operators would have saved up to N2bn if the VAT removal has been implemented.

Going by the 2017 figures released by the Nigeria Civil Aviation Authority (NCAA), local airlines transported 10.1 million passengers making about N94bn in ticket sales.

Out of the figures, five per cent, which is about N4.7bn would have been remitted to the government coffers.

This implies that if the policy has been implemented, more than N2bn would have been saved by airlines in six months.

Chief Operating Officer/Accountable Manager of Dana Air, Obi Mbanuzuo, confirmed that the policy removing VAT for airlines has not been gazetted.

He said, “There was never any implementation. We are still paying VAT till tomorrow. They should implement it. FIRS collect VAT and it is under the Ministry of Finance. As far as FIRS is concerned, there is no instruction to them about removal. So they are still requesting payments. When their controlling ministry, the Ministry of Finance, publishes or gazettes the order, everything will move forward”.

Minister of State for Aviation, Senator Hadi Sirika, had also confirmed during a stakeholders’ forum in Abuja that the policy has not been implemented but assured that the ministry is “liaising with relevant MDAs to ensure the smooth implementation of the Presidential Order”.

However, the Head of Communication and Servicom Department FIRS, Wahab Gbadamosi, said he was not familiar with the Presidential Order, stressing that “FIRS will comply with any directive from the Presidency or any law passed by the National Assembly”.

 

 

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Access Bank Appoints Uche Orji as Independent Non-Executive Director

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Access Bank Appoints Uche Orji as Independent Non-Executive Director

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Holdings Plc (‘the Company’) is pleased to announce the appointment of Mr. Uche Orji as an Independent Non-Executive Director of its flagship subsidiary, Access Bank Plc (‘the Bank’), effective from January 7, 2025, following the approval of the Central Bank of Nigeria (‘CBN’).

This appointment reflects our commitment to enhancing our governance practices and ensuring a diverse and experienced board.

Mr. Orji is a renowned investment banking professional, information technology entrepreneur, and finance expert with three (3) decades of professional and board experience. He is the Co-founder and Partner of Titangate Capital Management, an equity firm that invests in deep-tech, enterprise software, semi-conductors, hardware, and artificial intelligence companies.

He is the Founder and Director of Vitesse Africa Limited, an investment advisory firm focused on African energy, technology and infrastructure sectors. He serves as an Executive Board member and investor in Ultrasafe AI, an artificial intelligence/IT development firm that maintains strategic collaborations with leading technology companies. He also sits on the Board of Private Infrastructure Development Group, London, and chairs the Risk Committee.

Previously, Mr. Orji served as the founding Managing Director and Chief Executive Officer of Nigeria Sovereign Investment Authority. He held positions as Managing Director and Senior Analyst at UBS Securities Limited New York and Managing Director and Head of European Technology/Semiconductor Equity Research at JP Morgan Securities, London. He also served as Executive Director/Portfolio Manager at Goldman Sachs Asset Management, London. Earlier in his career, he was Acting Financial Controller at Diamond Bank Limited and an Audit Trainee at Arthur Andersen & Co.

He holds a Bachelor of Engineering Degree in Chemical Engineering from the University of Port-Harcourt and a Master of Business Administration from Harvard Business School.

Commenting on the appointment, Mr. Paul Usoro, SAN, the Chairman of the Bank said:

“Mr. Orji has been appointed based on his exceptionally rich professional, academic, and corporate board experience which will be invaluable to the Bank as we continue to pursue our strategic objectives.

We are confident that his addition to the Board would further enrich the quality of our decision-making process, enabling us to deliver even greater value to our customers and stakeholders.

His appointment has been made in accordance with the Bank’s internal policies and has been notified to all relevant regulatory authorities underscoring our commitment to upholding the highest standards of corporate governance.

On behalf of the Board, Management and staff, I warmly welcome Mr. Orji to the Board and look forward to his contributions towards our goal of becoming one of the top 5 African Banks in the shortest possible time.”

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Go and List Your Challenges, Lagos Speaker tells NANS Member During Courtesy Visit

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Go and List Your Challenges, Lagos Speaker tells NANS Member During Courtesy Visit

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The National Association of Nigerian Students (NANS), Lagos State University (LASU) branch, on Friday paid a courtesy visit on the Speaker of the Lagos State House of Assembly, Princess Mojisola Lasbat Meranda.

The student representatives said the visit was to congratulate Meranda over her emergence as Speaker of the State Assembly.

Meranda, an alumnus of LASU, was elected Speaker on January 13 after the removal of Mudashiru Obasa by the lawmakers over issues relating to alleged high-handedness and financial impropriety.

Describing her as a thoroughbred Lagosian, the chairman of NANS, Abdulraheem Azeez, used the opportunity to list some of the challenges faced by students in the university.

According to him, students have had to read in darkness as the Ikeja campus gets less than two hours of power supply daily.

Azeez also raised the need for the State to make available loans for indigent students as well as for the Assembly to provide opportunities for students to witness the plenary of the House.

Meranda, while thanking the students for the visit, urged them to always attend town-hall meetings in their constituencies where they can contribute and make their opinions known.

She further encouraged them to apply for the loans initiated by the government as done by students in other countries.

The Speaker requested the students to formally send their complaints in written forms to the House for action.

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EFCC Tasks Corps Members on Corruption

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

EFCC Tasks Corps Members on Corruption

The Executive Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ola Olukoyede charge members of the National Youth Service Corps, NYSC, to be change agents and strong resisting force against corruption.

He also enjoined them to be active foot soldiers and whistle-blowers or intelligence-gatherers against corruption.

Speaking on Thursday, January 30, 2025 at the NYSC Orientation Camp, Yikpata, Edu Local Government Area of Kwara State, Olukoyede said It is important for youths to realise that, these roles, if performed creditably, will bring up appreciable growth in the economy of our nation. He said that, “creative energies of youths will be maximised when corruption is brought to its knees.”

The EFCC boss whose address was delivered by the Head, Public Affairs Department, Ilorin Zonal Directorate of the EFCC, Ayodele Babatunde said that most of the problem confronting the country such as kidnapping, banditry, poor infrastructure, among others were connected to corruption. He added that all hands must be on the deck to tame the cankerworm.

Olukoyede encouraged the youths to embrace the virtues of hard work and shun fraudulent practices such as cybercrime noting that, “it’s profitable to earn dignity and fame through hard work and legit business.”

While calling on the youths to channel their potentials productively and shun crime, the EFCC Chair said that, “Yahoo-Yahoo is not a sustainable way of life.”

“There is no shortcut to wealth and fame. The fact that the rate of unemployment is high should not be an excuse to resort to crime. Act of criminality might deliver wealth in the short term but there will be misery and gnashing of teeth”, he said.

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