Govt asks airlines to come clean on tax component

New Delhi: Adopting a pro-consumer stand, the government has asked airlines to come clean on the ‘tax’ component in their tariffs. The amount described as tax should be deposited with the government or returned to passengers in case of cancellation, airlines like Jet Airways, Kingfisher, Air Deccan, SpiceJet, JetLite and IndiGo have been told.
The government’s call for transparency in air fares follows growing complaints from passengers about the ‘taxes’ paid by them. Almost all airlines show fuel surcharge, which now stands at Rs 1,650, under the head of ‘taxes and levies’ though this amount is not deposited with the government. It’s the same with the Rs 150 congestion surcharge.
The actual amount passed on to the government is only the passenger service fee (PSF) of Rs 225 per sector. Therefore, passengers have complained that they are forced to pay Rs 2,025 under the head of ‘taxes and levies’ while the government charges only Rs 225 as PSF.
06/12/07 Nirbhay Kumar/Economic Times

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Categories: General Aviation Dec 2007