British Airways (BA) has admitted to withholding a statutory payment to Nigeria, marking a turning point in the face-off between the government and the foreign airline which began weeks ago over discriminatory fare charged on the lucrative London-Lagos route.
Appearing before the Senate Committee on Aviation that organised an investigative public hearing on the violation of aviation laws by foreign airlines, BA Country Manager Kola Olayinka admitted to the carrier's tax evasion saying: “It is not only BA; no airline, as we speak, is remitting the five per cent charged on air fares to the NCAA (Nigeria Civil Aviation Authority)".
BA admitted it had failed to remit the five per cent Passenger Fuel Surcharge (PFS) on tickets to NCAA as required by global aviation practices.
Though the British carrier tried to assure the Senate Committee of its preparedness to begin to pay the tax, provided the legal requirements were clearly spelt out, the Senate Committee on Aviation has threatened to recommend its prosecution for tax evasion.
