New Delhi: Bell Alarm rang in the aviation industry with a paralyzed traveler number and no relief seen from the government at the price of jet fuel – which in India is one of the most expensive global for domestic flights – and indirectly.
India’s largest airline CEO, Ronojoy Dutta Indigo on Wednesday has no words in calling the Indian airline industry “chronic pain” and has asked for help to save life immediately.
He has called it a “unreasonable proposition to expect that the industry must get 21% margins only to pay taxes to the government.” According to the rating agency crocil, Indian operators, this fiscal can end up with a record of high collective losses of Rs 20,000 Crore.
“Civil flights provide efficient infrastructure, it is important for economic growth and work in our country.
But civil aviation pays 21% of its revenue to the government in non-direct taxes with very little input credit.
This is an unreasonable proposition to expect that the industry must expect that the industry must be Getting a 21% margin only to pay taxes to the government.
This unreasonable proposition results in an industry that is chronic pain and cannot fulfill the real potential to increase trade and work, “Dutta said.
“We will ask the Ministry of Finance to take immediate action to overcome this long problem.
Central excise tax on fuel must be reduced from 11% to 5%, ATF must be brought under GST, import duties on the repair section must be eliminated.
Tax rationalization will be removed.
produce explosive growth for flights, which will have multiplier effects throughout the economy, stimulate trade and work and integrate various regions in our diverse countries, “he added.
For almost two decades now the problem of high turbine fuel (ATF) prices in India remain unresolved.
Insider Industry said the problem would be compounded due to two reasons – high base prices with disproportionate oil companies raising ATF prices every time the raw basket became more expensive as a means of gasoline, diesel, kerosene that was politically sensitive, diesel, and gas.
Then high taxes, both central and state, make this expensive in the ATF even pricier.
Over the years, the state and the center gave money to each other to cut taxes.
“Except Delhi, Mumbai and some large metros cut ATF prices, we will not get real assistance in operating costs,” said a person in the industry.