Patel seeks rollback of service tax on domestic air travel

The Ministry of Civil Aviation will seek a complete rollback of service tax levied on domestic air travel in the recent Budget, Civil Aviation Minister Praful Patel said today.
In his Budget speech on February 26, Finance Minister Pranab Mukherjee had proposed a service tax of 10 per cent on both domestic and international travel. Earlier, the service tax was restricted only for international travel.
“We are looking into this issue seriously and will request the finance ministry to roll back the service tax. We are hopeful that the latter would respond favourably to our request,” Patel said at a press conference at the five-day India Aviation 2010 that kicked off here today.
Replying to a query on security issues in the aviation sector, the civil aviation minister said the job was not over by creating infrastructure for the aviation industry. “The country needs safe and secure aviation. Indian aviation will not grow at the cost of safety and security,” he said. Patel said the ministry was working on introducing full-body scanners at all airports in the country.
04/03/10 Business Standard

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Categories: Indian Aviation- In General Mar 2010