Streamline tax structures to help airlines fly

Mumbai,New Delhi: Ahead of the announcement of the Union Budget, the aviation sector wants the government to streamline various tax structures so that airlines can reap benefits.
The Federation of Indian Airlines (FIA), of which all the India-based airlines are members, have submitted a memorandum to the finance ministry on February 6, asking the government to include ATF in the ‘declared goods’ category so that it attracts a uniform sales tax of 4% across the country.Major airlines, including Jet Airways and Deccan, posted huge losses in the third quarter of this fiscal.
It may be recalled that the FIA had also asked the government last year to declare a uniform sales tax on ATF, which is priced nearly 70-90% higher than what it is across the globe.
The second most important demand for the sector is an exemption of tax for a period of 36 months for expat pilots from the date of arrival in India.
Other issues which the airlines want the government to consider include the removal of service tax on landing and airport and air navigation fees as it reduces domestic Companies’ competitiveness against other foreign airlines.
19/02/08 Financial Express

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Categories: Indian Aviation- In General Feb 2008