They explained that unless the federal government and other
stakeholders address challenges bedevilling the nation’s maritime and aviation
sectors, projected benefits may remain elusive.
The experts insisted that adopting the same presumptive tax
rate of six percent as in other industries may be counter-productive in the
shipping and aviation sectors, adding that consolidation of accounting
mechanisms as well as a single revenue authority remain sacrosanct for the
country.
Speaking during thought leadership session for aviation and
shipping sectors led by FIRS and Pedabo Professional Services, the Executive
Chairman of FIRS, Muhammad Nami asked the federal government to block leakages
in the accounting and revenue segments of the economy through consolidated
accounting mechanism and a single revenue authority.
He noted that existing gaps provide run for leakages and
limit revenue and accounting potential, adding that there was a need to
consolidate or aggregate the country’s accounting mechanism to ensure taxes
paid are accounted for by a single revenue authority in the country.
To him, the development would ensure that taxes collected on
behalf of the government are remitted to fund budgetary allocations, social
amenities as well as critical infrastructure.
Managing Partner, Pedabo, Ajibade Fashina said that the
shipping and aviation sector can leapfrog contribution to Gross Domestic
Product (GDP), if well managed.
Speaking on blocking the leakages in the country’s tax
system to boost remittances, he said the law is certain and is being improved
regularly.
“The Finance Act that is being reviewed on a yearly basis.
They (FIRS) identify the leakages and loopholes, and they are blocking those
loopholes, and that is what should be done.
“Maybe the government needs to think more about what the
money is being used for. Who is collecting what? Why are so many of those
funds, which more or less, form part of the revenue, not going into the
national purse? I think those are issues that need to be addressed,” Fashina
added.
With disputes on shipping and airline taxation between the
Federal Government and some operators, a Partner at Pedabo, Killian Khanoba,
stated, “Nigeria is not alone in the practice of exerting tax on container
leasing and ancillary revenues. The dispute with the international lines on the
matter is also not isolated to Nigeria.”
With over 16 agencies in the airports and sea in the
country, Khanobanoted that shipping and aviation must not be treated with
levity to attract flow of capital, goods and services.
He said: “Aviation and shipping sectors in Nigeria are
characterised by multiplicity of charges, levies and taxes payable by
operators. This must be addressed for the sector to grow. The Nigerian tax
regime for the sectors obviously needs a makeover, to guarantee growth.”
Managing Consultant at Pedabo, Albert Folorunsho noted that
the Federal government needs to include in extant regulations issues related to
taxation for shipping companies operating within or around the country to
simplify collection.
NCAA Urges Youths to Take Up Career in Aviation
The Director General, Nigeria Civil Aviation Authority
(NCAA) Captain Musa Nuhu, has said that the regulatory body is committed to
educating Nigerian youths to choose career in aviation to address the dearth of
manpower in the sector.
Speaking at the 5th Explore Aviation Career Conference,
which held in Lagos with the theme: ‘Harnessing the potential of the Next
Generation of Aviation Professionals,’ Nuhu said, the industry was in dare need
of adequate, competent and experienced workforce.
He said since the restart of flight operations after the
Covid-19 lockdown, more airlines have commenced operations, increased their
fleet and expanded their routes.
According to him, with this development and growth of the
aviation industry, the scope of oversight activities of the NCAA have expanded.
Nuhu stressed that the regulatory body and the industry in
general were suffering from lack of adequate specialised aviation professionals
especially in the technical areas.
“Especially in the integral critical areas, it is important
to know this is not peculiar to Nigeria but a global one especially with our
inspectors in flight operations department,” Nuhu said.
He explained the career conference came at the right time as
this would serve as a starting point in the process of identifying and training
of young aviation professionals that would ultimately operate and manage the
various sectors of the industry.
“We need to have the young people to get into the aviation
industry, the industry is growing, we need you, excellent career to have a
wonderful career, fulfilled career at the end of the day, we would all support
you,” Nuhu added.
Convener of the conference, Joy Ogbebo, said the essence of
the yearly conference was to bring the professionals and the aspiring youths
together, discuss and ask questions, adding that the impact on the industry has
been tremendous.
‘There was Moderate Rebound in September Passenger’s Demand’
The International Air Transport Association (IATA) has
announced a moderate rebound in air travel in September 2021 compared to
August’s performance. This was driven by recovery in domestic markets, in
particular China, where some travel curbs were lifted following the COVID-19
outbreaks in August. International demand, meanwhile, slipped slightly compared
to the previous month.
IATA explained that because comparisons between 2021 and
2020 monthly results are distorted by the extraordinary impact of COVID-19,
unless otherwise noted all comparisons are to September 2019, which followed a
normal demand pattern.
Total demand for air travel in September 2021 (measured in
revenue passenger kilometers or RPKs) was down 53.4 per cent compared to
September 2019. This marked an uptick from August, when demand was 56.0% below
August 2019 levels.
Domestic markets were down 24.3 per cent compared to
September 2019, a significant improvement from August 2021, when traffic was
down 32.6 per cent versus two years ago. All markets showed improvement with
the exception of Japan and Russia, although the latter remained in solid growth
territory compared to 2019.
International passenger demand in September was 69.2 per
cent below September 2019, fractionally worse than the 68.7 per cent decline
recorded in August.
IATA’s Director General, Willie Walsh, said: “September’s
performance is a positive development but recovery in international traffic
remains stalled amid continuing border closures and quarantine mandates.
The recent US policy change to reopen travel from 33 markets
for fully vaccinated foreigners from 8 November is a welcome, if long overdue,
development. Along with recent re-openings in other key markets like Australia,
Argentina, Thailand, and Singapore, this should give a boost to the large-scale
restoration of the freedom to travel.”
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