rivate jet owners to pay $4,000 luxury tax

The Federal Government has imposed a
luxury tax on private jet owners and
operators in the country.
As a result, the Nigeria Civil Aviation
Authority has directed the owners and
operators of private jets to pay the sum of
$4,000 for every flight departure within
the country.
According to a memo to all private jet
operators and obtained by our
correspondents, the NCAA ordered that
Nigerian-registered private jets would
henceforth pay the sum of $3,000 for
every departure, while foreign registered
private jets would pay $4,000 per
departure.
The memo, dated August 28, 2013, and
signed by the Director-General, NCAA,
Captain Fola Akinkuotu, was titled, ‘Order
charging certain fees on operations in
general aviation.’
The memo, with reference number:
NCAA/DG/OR/GA/VOL.11/2013/06,
reads, “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.
“This order shall be effective and in force
immediately upon the date of issuance.
Failure to comply shall result in denial of
operations and or privileges.”
The memo is, however, generating
controversy in the aviation sector, with
some operators arguing that the levies
are illegal and, as such, they will not pay.
But the NCAA has filed a suit at the
Federal High Court, Lagos, challenging
the reluctance of foreign and locally-
registered aircraft operators to pay the
levies.
In an originating summons dated
September 23, 2013, the plaintiff (NCAA)
is praying the court to determine whether
by true construction of sections 30 (2) (q)
and 30 (5) of the Civil Aviation Act, 2006,
it is empowered to impose fees on all
foreign and Nigerian registered aircraft
engaged in non-scheduled operations.
The agency deposed that the payment of
the said fees was to take effect from the
date of the issuance of the order.
The affected airlines and aircraft
operators under the aegis of the Airline
Operators of Nigeria have described as
draconian the policy, which they say
amounts to double taxation and an
illegality.
If the move by the NCAA becomes
successful, it will affect pastors, business
moguls and other private jets owners in
the country, who will be expected to
cough out about $1.4m annually as
luxury tax.