Airlines want to flyfree of fringe tax

New Delhi: In a bid to lower costs, the aviation industry has sought relaxation of fringe benefit tax (FBT) on various free benefits granted by airlines to its employees and passengers. At present, as per Finance Act 2005, FBT is levied on free and concession passages given by airlines firms to its employees, expenses for crew, hotel accommodation provided to passengers due to delays and cancellations, and expenses on catering and inflight entertainment.
The Federation of Indian Airlines (FIA) has written to the finance ministry that these benefits should not attract FBT as these are incurred as part of regular operational requirements.
FIA plans to lobby with various ministries to ensure a profitable environment for the sector.
01/01/07 Sunny Verma/Economic Times

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