18.7 C
Cape Town
Mon, Nov 30, 2020
Home Aviation The end of double taxation for Nigerian Travel Agents is in sight

The end of double taxation for Nigerian Travel Agents is in sight


2 min read

Both airline operators and Travel Agents in Nigeria have welcomed the fact that President Muhammadu Buhari signed of an Executive Order for the removal of Value Added Tax (VAT) from “All Forms of Shared Transportation.”

“It is our prayer that President Muhammadu Buhari will go a step further to encourage the National Assembly to pass this Executive Order into law as quickly as possible,” the Airline Operators of Nigeria Chairman, Capt. Nogie Meggison, commented on the news in a statement.

“This is good news for the industry,” says also Adeshole Kayode, Director of Capstone Travels and Vice President of the National Association of Nigeria Travel Agencies (NANTA-Abuja Zone).

According to Kayode, Nigerian Travel Agents have complained of ‘double taxation’ for years but nobody ever took notice, until now. He explains airlines deduct WithHoldingTax (WHT) directly at the point of ticket sales. Despite the airlines already collecting taxes, the Tax Office requires Travel Agents to pay as well, resulting in double taxation for Travel Agents.

Says Kayode: “The VAT issue has lingered for years with nobody able to fathom exactly how these taxes are being calculated or who is exempted to pay. This issue has over the years generated a lot of controversies between the Tax Office and the Travel Agent.”

“This removal of VAT on transportation by the President through an Executive Order is a welcome development that calls for celebration. To me as NANTA executive, it’s a very welcome development. The good news also comes at the perfect time, as we are professionalising the industry.”

Also for domestic airline operators and travellers, the removal of VAT is good news, adds Kayode. He explains we are likely to see reduced airfares in the near future. He explains many Nigerians still view flying as reserved to the elite. More affordable flights will boost domestic travel, according to Kayode.

Dorine Reinstein
Dorine Reinstein
Dorine Reinstein is a seasoned travel writer and editor, who is passionate about retail travel as well as inbound tourism. She has written for award-winning publications. Dorine has completed her Honours Degree in English and Dutch Literature in Belgium as well as her Honours Degree in Drama in France. When moving to South Africa, she obtained her Advanced Journalism Diploma in Johannesburg. She has a knack for languages and can write effortlessly in English, Dutch and French.

Must Read

Norwegian Cruise Line launches summer 2023 Itineraries

Norwegian Cruise Line, the innovator in global cruise travel with a 53-year history of breaking boundaries, today opened for sale summer 2023...

Hideaways on the Garden Route

After a year filled with challenges, hardships and fears, most people are keen for a holiday that offers a complete break from...

Flight Centre Travel Group RSA repositions Flight Centre Business Travel and Corporate Traveller for post-COVID growth

Flight Centre Travel Group RSA today announced the integration of the wholly-owned Flight Centre Business Travel brand into the award-winning global Corporate...

Fedhasa urges Insurers to ‘do the right thing’ as the hospitality industry continues to bleed

Fedhasa has condemned Santam’s decision to appeal the unanimous decision by a full bench of the Western Cape High Court requiring the...

Airlink and Amadeus partner to boost growth and enhance the traveler experience

Airlink adopts Amadeus solutions that will allow its customers to benefit from a better travel experience and improved efficiency as well as...