Airfares higher in Indian than in China due to taxes: Naresh

Beijing: Air fares in India were about 300 per cent higher than those in China and some other countries because of high tax rates, Jet Airways chief Naresh Goyal said on Monday, asserting that the aviation industry could not grow with such taxation.
"The Indian (aviation) industry can't grow with the taxes. In fact, India is the only country in the world to impose a service tax on their airlines. Do you know that the fares of Chinese airlines are a third of the Indian carriers? Why is it so? Because there are no taxes here. In fact, the Indian fares are higher by 200-300 pc if compared with the world's other carriers, leave alone Chinese," Goyal told PTI here.
Comparing Chinese airlines with their Indian counterparts, he said Chinese airlines are all state-owned and "have solid government backing, not from now but for a very long time. The Chinese government doesn't tax their own carriers and there is a lot of state support to them".
11/06/12 One India News

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Categories: Foreign Jun 2012, Indian Aviation- In General Jun 2012, Jet Airways Jun 2012