Nigerian government will soon impose a form of luxury tax on owners and operators of private jets in the country, top officials of the Ministry of Aviation has told Punch, a local Nigerian newspaper.
The plan to impose the luxury tax will be preceded by the new general aviation policy, which is currently being drafted by the government, officials said.
The move is part of the on-going review of the 2006 Civil Aviation Act, which wil be perfected soonest.
A source privy to the plan explained that the luxury tax on all private jet owners. “is patterned after what is in operation in Brazil and most European countries.”
The source said, “You know the government is exempting private jet owners from possessing AOC in the proposed general aviation policy that will be unveiled very soon. As soon as this is implemented, the government will start asking all private jets to pay the luxury tax.”
“The idea is that since chartered aircraft operators and regular commercial airlines are already paying ticket sales tax and passenger service tax to the government, private jet owners should also pay a form of tax, which most countries of the world called luxury tax. The plan to exempt private jet owners from possessing an AOC before they can fly is just part of the whole policy proposal.
“All these foreign private jets coming into the country must either come under an AOC and be mandated to pay ticket sales charge and passenger service charge, or you stay under private category and pay luxury tax. Once you are flying within the country for some time, you must fall in one of the categories.”
Private jet owners in Nigeria include President of Dangote Group, Alhaji Aliko Dangote; Chairman, Globacom, Dr. Mike Adenuga; Chairman, Zenon Oil, Mr. Femi Otedola; General Overseer, Redeemed Christian Church of God, Pastor Enoch Adeboye; and General Overseer, Living Faith World Outreach, Bishop David Oyedepo.
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