21% indirect texes hitting airlines hard: IndiGo CEO

The civil aviation industry has to pay 21 per cent of its revenues as indirect taxes and this “unreasonable proposition” is resulting in a chronically ill sector, IndiGo CEO Ronojoy Dutta said.

Dutta requested the Ministry of Finance to reduce central excise taxes on fuel from 11 per cent to 5 per cent and eliminate custom duties on aircraft repair parts.

Civil aviation provides efficient infrastructure, critical for economic growth and employment in our country, he said in a statement.

“Yet civil aviation pays 21 per cent of its revenues to the government in indirect taxes with very little input credit,” Dutta said.

“This 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,” he said.

Dutta requested the Ministry of Finance to take immediate action to address the long festering problem.