Today, President Buhari in Port Harcourt, River State, said
the Federal Government’s removal of Value Added Tax (VAT) from domestic air
travels will reduce air fares, enable speedy movement of more people and spur
business activities that will stimulate the economy.
Speaking at the commissioning of the new terminal of Port
Harcourt International Airport Omagwa, President Buhari said the decision by
the Federal Government to remove VAT from domestic air transportation was in
line with global best practices of making air transportation affordable, which
will subsequently lead to the creation of more jobs by the air transport
service value chain.
He said the removal of VAT will also increase revenue for
the government with more traffic at the airports. The President noted that the
increase in national population with consequent surge in air passenger traffic
necessitated upgrading and construction of new airports across the country.
“I am very pleased to formally commission the new
International Terminal of the Port Harcourt airport, Omagwa, today. This
ceremony represents a significant landmark for international air travellers,
particularly from the South-South region and the entire country.
You will recall that after opening the major airport
terminals in the country in the late 70s and early 80s, not much was added to
increase the passenger handling capacity of these facilities by successive
administrations.
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,’’ he added.
The President said decisive actions had to be taken by the
Federal Government to ensure that terminals meet minimum international standards
for the travelling public.
“The Federal Government responded to a global trend in which
aviation became a catalyst for economic growth as a result of massive and
speedy movement of persons, goods and services in a safe and secure manner.
“As part of the infrastructure renewal program, 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 to meet global aviation standards
and improved service delivery in tandem with best international practices,’’ he
said.
President Buhari said at the presentation of the 2017 Budget
to the National Assembly he promised to upgrade and develop Nigeria’s transport,
power and health infrastructure, and complete a number of stalled
infrastructure projects, which includes major airports, roads and power
projects, and the completion of the Kaduna–Abuja as well as Itakpe to Warri
Railway lines.
The President said Nigeria, having an advantageous central
location within the sub-region with a desire to develop into a regional air
transportation hub, must upgrade its facilities to take advantage of its
assets.
