Thursday, March 03, 2011

Government taxing your air travel in violation of rules

New Delhi: The hefty 10.3% service tax you are being made to pay to fly abroad for the past few years is violation of rules of International Civil Aviation Organisation (ICAO), to which India is a signatory.
To stop the fleecing, Air Passengers Association of India (APAI) has decided to take up the matter with ICAO as well as the civil aviation ministry.
India started levying the tax on international business or first class air travel in 2006.
“ICAO resolutions state that international air transport should be exempt from taxes,” Albert Tjoeng, spokesperson for International Air Transport Association (IATA), said, adding, “India’s service tax on tickets for international travel contravenes ICAO resolutions. It is ironic that despite being a member of ICAO, India should contravene its resolutions.”
ICAO is a United Nations agency that codifies principles and techniques of international air navigation and fosters planning and development of international air transport to ensure safe and orderly growth, while IATA is a trade body of international airlines.
03/03/11 Naveeta Singh/Daily News & Analysis
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