Airlines’ forum urges government to cut taxes, levies

November 3rd, 2008 - 11:05 pm ICT by IANS  

New Delhi, Nov 3 (IANS) The International Air Transport Association (IATA), an international forum of airlines, Monday said the crisis in the aviation industry was “deepening”, and urged the government to reduce excess taxes and charges.IATA director general and chief executive Giovanni Bisignani said the service tax on premium class tickets, air navigation charges, landing and parking charges were contrary to the norms for international civil aviation obligations.

However, he welcomed the Indian government’s decision to scrap five percent customs duty on jet fuel.

Bisignani stressed the need for “reasonable” taxation in India. According to him, India is the epicentre of the aviation crisis with losses of over $1.5 billion this year.

Urgent measures are required to save the crisis-hit aviation industry, he said.

The government move to set up the Aviation Economic Regulatory Authority (AERA) was a right step forward, Bisignani said.

He urged the government to adopt comprehensive policy approach in addition to establishing AERA.

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