IndiGo asks govt to cut taxes on jetfuel, repair parts

New Delhi: Reeling under pandemic, private carrier IndiGo has asked the government to cut taxes on jetfuel and repair parts.

The airline noted that civil aviation sector pays 21% of its revenues to the government in indirect taxes with very little input credit as it pitched for immediate tax relief.

Ronojoy Dutta, Whole Time Director and Chief Executive Officer, IndiGo on Wednesday said that it is an unreasonable proposition to expect that the industry should earn a 21% margin just to pay taxes to the Government.

He further said that the unreasonable proposition is resulting in an industry that is chronically ill and is unable to live up to its true potential of boosting commerce and employment.

“We would request the Ministry of Finance to take some immediate action to address this long festering problem. Central excise taxes on fuel should be reduced from 11% to 5%, ATF should be brought under the GST, custom duties on repair parts should be eliminated,” Dutta said in a statement ahead of Union budget.

The senior airline executive said that a rationalization of taxes will result in explosive growth for aviation, which will have multiplier effects throughout the economy, stimulating commerce and employment and integrating the different regions of our diverse country closer together.

Research and rating firm CRISIL last week said that India’s airlines are flying towards their steepest-ever net loss of more than Rs 20,000 crore this fiscal, 44% more than the Rs 13,853 crore bled last fiscal owing to the twin headwinds of the third wave of the Covid-19 pandemic and high aviation turbine fuel (ATF) prices.


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