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SAHCO demands new fiscal regime for business

SAHCO demands new fiscal regime for business

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Skyway Aviation Handling Company (Sahco) Plc is demanding a new fiscal regime that exempts investors in the ground handling and warehousing sub-sector of the aviation industry from paying Value Added Tax (VAT) as well as Custom duties on imported technology, machines and spare parts.

Its Managing Director, Basil Agboarumi said such regime would trigger incentives to grow the ground handling, passenger ramp services and allied sub-sector in addition to creating jobs for Nigerians.

Agboarumi said the government needed to assist ground handling firms by extending the waivers it granted to domestic carriers on exemption of duties on aircraft spares and parts and other notables.

He said without ground handling firms, airlines could not operate at the airports because ground handlers provide logistic intensive services before and after the aircraft departs.

He, however, lamented the exorbitant cost (in foreign exchange) invested on imported equipment used in the ground handling industry, saying while cost of operation had gone up astronomically in the last two to three years, ground handling firms were, however, constrained in increasing their charges.

Agboarumi said ground handling firms would continue to make sacrifice for the sector, because many airlines and exporters would not be able to offer appropriate pricing for services rendered judging by economic realities.

He said: “We need fresh incentives from the Federal Government to grow this sector and create jobs for our citizens. If the local airlines are granted incentives or waivers by the Federal Government on VAT and on Custom duties on imported machinery and parts, then ground handling firms who handle the most critical job for the airlines deserve to be also considered for such waivers.

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