NEW DELHI: The International Air Transport Association (IATA) has urged the government to have a Goods and Services Tax (GST) regime that conforms to global standards and principles, to avoid higher tariffs to air passengers.
IATA also added that the tax burden on the aviation sector is already high. The global aviation body said that it has been “working closely” with the GST Secretariat, to address some issues of concern to airlines, its chief Alexandre de Juniac said in a statement on Friday.
“We have called for a zero-rating for international flights when the GST comes into effect next April. This seems unlikely. To limit its damage to the sector’s competitiveness, we would at least hope for an abatement in the rate,” de Juniac said.
The IATA Director General and CEO, who met top officials of the government and Indian carriers during his two-day visit, said he had shared these and other concerns with the government. Besides GST, the concerns included “high” tax on aviation fuel charged by states, the service tax on air tickets and exorbitant airport charges.
However, “while the passenger experience has improved, the impact for airlines has been far less positive,” he said seeking a stronger regulatory framework to ensure a balance between commercial and national interests.
He also urged India to join the Carbon Offset and Reduction Scheme for International Aviation (CORSIA) — a mechanism to facilitate growth sustainably.