Saturday, August 11, 2018

Bring jet fuel under GST: Indian airlines tell govt

In a bid to bring operational costs down, the airline industry has urged the government to include jet fuel under the Goods and Services Tax (GST). The aviation industry says it has been bearing the brunt of a high tax structure and weaker exchange rates for some time now.
“For our industry to take off, we need to ensure that the cost of our industry is lower or at least at par with our global counterpart. We cannot have the high cost of aviation fuel… we cannot have the high cost at the airports (airport taxes) and we definitely cannot have a bunch of indirect taxes being levied on the industry and then expect us to compete with international airlines,” Spicejet’s chairman and managing director Ajay Singh at the 11th International Conference cum Awards on Civil Aviation and Cargo held in New Delhi on Friday.
Singh added that the industry along with the government must work towards making India a global hub for international flights as well. “Bring the ATF (aviation turbine fuel) under GST to ensure that we get the proper input credit for all the indirect taxes that are imposed on us. We need to develop Delhi, Mumbai, Chennai, Bangalore, Hyderabad as global hubs. We need to come up with proper taxation structure, proper policies and proper business models that allow Indian carriers to operate profitably,” he noted.
10/08/18 Purba Das/Fortune India