Monday, October 07, 2013

European air tax grounded

New York: The next time you fly to Europe or beyond the Continent into America, you may never know how much you saved. But it will certainly be a windfall, running into thousands of rupees per ticket.
Indian diplomacy, working in tandem with Brazil, Russia, China and South Africa, the BRICS group, defeated during the weekend a European Union (EU) plan for collecting a tax on airline carbon emissions.
It would have required Air India to pay Rs 200 crore to EU governments over the next 10 years, according to calculations by India’s civil aviation ministry.
Other Indian airlines flying to Europe or through EU air space would have had to pay similar taxes if a dramatic fight, led by India and China, at the just concluded General Assembly of the International Civil Aviation Organisation (ICAO) had not dealt a potentially fatal blow to the EU plan, which was to take effect next year.
The hefty tax would have been passed on to the passengers not only by Air India and other Indian carriers but also by the foreign airlines on which tens of thousands of Indians fly to Europe and beyond.
06/10/13 KP Nayar/Telegraph
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