Aviation workers have threatened to shut down the sector if President Bola Ahmed Tinubu refuses to reconsider the implementation of 40 per cent Internal Generated Revenue remittance by aviation agencies to federal coffers.
On Thursday, Ben Nnabue, the National Union of Air Transport Employees (NUATE), made this known at the 11th Quadrennial National Delegates’ Conference in Benin, Edo State.
According to him, the 40 per cent deduction from the revenue of aviation agencies is unhealthy for the industry.
He stressed that no agency can survive the burden considering the level of expenditure.
He urged the President and the Minister of Finance, Wale Edun, to grant special waivers to agencies in the aviation sector.
“At the current revenue levels vis-à-vis expenditure levels, and recognising the high level of regulation in the industry, it is impossible for any agencies to sustain its operation under the present yoke of the Act.
“If the deductions continue, it is almost certain that the agencies will collapse, which will spell a heavy crisis for the national economy. Therefore, may I use this medium to appeal to President Bola Tinubu and the Hon. Minister of Finance to stop the double deductions and then grant special waivers to the aviation agencies without which the sector cannot perform their statutory duties. I sincerely hope this appeal will be heeded in the national interest,” he stated.
DAILY POST gathered that the policy aligns with Section 62 of the Finance Act 2020, which permits a 40 per cent auto deduction of federal agencies’ revenue to the Single Treasury Account, TSA.
40% revenue deduction: Aviation workers threaten to shut down sector