President Muhammadu Buhari said on Thursday that the recent decision by the Federal Government to remove Value Added Tax (VAT) from domestic air transportation was to ease air travels, grow the sector and create job opportunities in the nation’s aviation sector.
Buhari, who made the disclosures at the inauguration of the new International Terminal of Port Harcourt Airport, Omagwa, Rivers, explained that the government’s decision to charge zero VAT from domestic air transportation was in line with global best practices.
He clarified: “This will make air travel more affordable and subsequently lead to the creation of jobs by the air transport service value chain as well as increase revenues for government.
“Today’s commissioning is an example of government’s deliberate policy to sustain the development of infrastructure for economic growth in all geo-political zones of the country”, the President added.
He explained that the inauguration of the terminal aligned with global trend in which aviation sector has become a catalyst for economic growth as a result of massive and speedy movement of persons, goods and services in a safe and secure manner.
Buhari expatiated: “Following the large increase in national population with consequent surge in air passenger traffic, the capacity of the airport terminals became woefully inadequate to cater for the increase in passenger traffic.
“Although, palliative measures were periodically carried out, the facilities were fast giving-in to the effects of wear and tear. It, therefore, became necessary to take decisive action to ensure our terminals meet minimum international standards for the travelling public.
“As part of the infrastructure renewal programme, the construction of four new international terminals at Abuja, Lagos, Port Harcourt and Kano airports was embarked upon by the Federal Government with a view to modernising the aging airport infrastructure”, the President stressed.
