Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

India flouting global laws by taxing international air tickets: IATA

Author: PTI/Monday, June 4, 2018/Categories: Aviation

India flouting global laws by taxing international air tickets: IATA

By Amitabha Roychowdhury

Sydney, June 4 - The International Air Transport Association (IATA) today castigated India for taxing international tickets, as it asked governments to facilitate the growth of worldwide connectivity by avoiding creeping re-regulation, maintaining the integrity of global standards and addressing a capacity crisis. 

“We must take governments to task. It is unacceptable that global standards are being ignored by the very governments that created them,” IATA's Director General and CEO Alexandre de Juniac said.

Asserting that India was taxing international tickets in contravention of the resolutions of the UN body International Civil Aviation Organisation (ICAO), de Juniac said, “India helped develop ICAO resolutions prohibiting tax on international tickets.”

“Yet it persists in taxing international travel,” he said, apparently referring to the imposition of Goods and Services Tax (GST) and enhancement of its rates on international air tickets, especially business class.

The Indian government had announced the implementation of the GST from July 1, 2017. The tax covers airline products and services including tickets, ancillary, change, refund and other products and fees. 

De Juniac was presenting a report on the air transport industry at the opening session of the 74th IATA Annual General Meeting and World Air Transport Summit, which began here today.

“On aviation's core mission to deliver safe, secure, accessible and sustainable connectivity, the state of our industry is strong and getting stronger. And with 'normal' levels of profitability we are spreading aviation's benefits even more widely.

“But there are challenges. Smarter regulation needs to counter the trend of creeping re-regulation. Global standards must be maintained by the states that agreed (upon) them. And we need to find efficient solutions to the looming capacity crisis,” he said.

Alluding to the recent announcements by the Trump administration in the US on imposition of hefty tariffs on import of steel and other products, he warned that “the spectre of a trade war looms” which would hit the aviation industry as well, specifically in terms of cargo movements and business travel. 

“The forces of protectionism are gathering strength. Sanctions, tariffs and geopolitical conflicts are the mainstay of daily news. The spectre of trade war looms. Debates on migration and immigration rage. And trust among nations is showing fragility,” the IATA chief said. 

He said airlines flew over four billion passengers in 2017 while more than 60 million tonnes of cargo was delivered by air, accounting for a third of the value of goods traded globally. 

“Every day, goods, people, investment and ideas are connected by aviation. That directly supports 63 million jobs and improves the quality of life for all,” de Juniac said. 

However, it is “a challenging industry to operate”, he said, adding “high taxes, costly and ill-conceived regulation, infrastructure capacity constraints, market shifts and the demands of labour are the ‘normal' repertoire.” 

“Protectionism could derail successful international joint ventures. And fuel costs are expected to be up 25 per cent on 2017,” he said. 

However, despite such a scenario, the aviation industry's financial foundation has “grown stronger”, he said, projecting that the airlines would make nearly USD 40 billion this year as passenger demand is expected to grow 7 per cent and cargo by 4 per cent.

“There are challenges. We will meet them head-on. How? By building the partnerships and understanding needed to further the reach and expand the benefits of the amazing industry... I will say it proudly again, we are the business of freedom,” de Juniac said.

Print Rate this article:
No rating

Number of views (97)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free