Saturday, October 22, 2016

Airlines, IATA oppose levy of tax on fliers from major cities to fund scheme

The Government’s proposal to levy a tax or fee on flyers between major cities to fund the regional connectivity scheme has been opposed by a number of Indian airlines and the International Air Transport Association (IATA).

Ajay Singh, Chairman, SpiceJet, told newspersons, when the Government proposes to launch a scheme like Regional Connectivity it needs to fund it from its own budget instead of imposing more tax on consumers. “We oppose it from the perspective that there could surely be other ways to fund something which is nationally so important,” he said.

Expressing strong views on the issue, Alexandre de Juniac, Director-General and Chief Executive Officer, IATA, said the scheme would be paid for by some airlines and the money distributed among others. “We know who is paying but we are not sure who will be receiving it,” the IATA D-G said.

IATA officials added that for developing sustainable connectivity in any location one needs to have a cost structure that allows one to do it.
21/10/16 The Hindu Business Line