STOCK MARKET BSE NSE

Fuel tax framework hits airlines hard: International Air Transport Association

IATA, in the release, also called on the Union government to maximise the potential contribution of aviation to India’s development by addressing infrastructure constraints.

Published: 05th September 2018 03:26 AM  |   Last Updated: 05th September 2018 03:26 AM   |  A+A-

A Boeing passenger plane from China, a Xiamen Air, sits on the grassy portion of the runway of the Ninoy Aquino International Airport after it skidded off the runway while landing Friday, Aug. 17, 2018 in suburban Pasay city southeast of Manila, Philippin

Image for representational purpose only.

By Express News Service

CHENNAI: As fuel prices are skyrocketing, India’s regulatory and tax framework around fuel has hit hard the airlines serving the Indian market, according to Alexandre de Juniac, International Air Transport Association’s (IATA) Director General and Chief Executive Officer.

“To start, there is no real competition for fuel suppliers at airports, so there is little commercial incentive to keep fuel prices competitive. Then the airport takes fuel throughput fees. And, adding insult to injury, the GST is then applied to the throughput fee, the infrastructure fee and the intro-plane service fee. Then, on domestic flights, fuel is subject to excise duties and state taxes go up to 30%,” said de Juniac at the International Aviation Summit in Delhi, co-hosted by the Indian Ministry of Civil Aviation (MoCA), the Airports Authority India (AAI) and the IATA.

“We understand that governments need tax revenue. But the economy needs financially sustainable air connectivity. The lack of competition in fuel and lack of true open access to on-airport fuel infrastructure is strangling the lifeblood from the airlines. If you kill the goose that lays golden eggs, there are no more eggs,” a release quoting him stated.

IATA, in the release, also called on the Union government to maximise the potential contribution of aviation to India’s development by addressing infrastructure constraints.

Stay up to date on all the latest Chennai news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp