Aviation ind seeks service tax rollback on local, overseas travel

New Delhi: The aviation industry sought a rollback in the proposal to impose service tax on all classes of air travel in both domestic and international sectors, saying it would act as a "dampener" for the industry, which is yet to come out of the red.
Refusing to comment on the issue, Civil Aviation Minister Praful Patel welcomed the provision of Rs 1,200 crore for Air India in Budget 2010-11.
"It is on expected lines. The issue was discussed (by the Group of Ministers) in the past. The government has kept its commitment to capitalise the national carrier," he said.
Industry leaders, requesting anonymity, said the decision to impose ten per cent service tax was rather "steep" and urged the government to see how it could be rolled back or avoided.
They said the Indian aviation industry had just started showing signs of recovery after two years of a major setback, when it accounted for almost one-third of the global industry losses.
The move to impose service tax would "act as a dampener" for the sector, they added.
26/02/10 Press Trust of India/Business Standard

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Categories: Indian Aviation- In General Feb 2010