Kochi: India's relatively high taxation of aviation fuel is hurting the industry, complained Neil Mills, chief executive officer of low-cost carrier SpiceJet Ltd.
"We pay anything between 16% and 30% as sales tax depending on the individual states. In most parts of the world, it doesn't exceed 3% for domestic flights. The difference is that most countries have recognised aviation as an infrastructure. In a country as large as India, the alternatives of going by train or by road are not viable. At the moment, aviation is taxed as luxury in India," Mills said.
Investment recovery mechanism of the Indian airports is also faulty, observed Mills, who had earlier worked with UK's EasyJet.
12/12/12 Times of India
