Rationalisation of various taxes
According to Kinjal Shah, vice president, ICRA, the aviation industry s deteriorating financial health has raised tax sops expectations to help reduce their high cost and debt burden, especially lowering taxes on ATF.
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The ATF comprises nearly 30-40% of the total cost of an airline, and the prices in India are 45-50% higher, compared to international standard prices, she added.
Though, ahead of the budget, the government has also hinted that it is planning on the same lines. Addressing a webinar on Connecting the Dots-Recovery of aviation, tourism and hospitality , Usha Padhee, Joint Secretary, Ministry of Civil Aviation said, we are working on a long-term plan to help the sector by rationalising various taxes. We are looking forward to making the ecosystem smarter and more efficient to make the aviation sector sustainable.