BURDEN OF TAXES ON AIRLINES
Ajay Singh, CMD SpiceJet has made a pitch for a cut in state taxes on aviation turbine fuel (ATF) and for bringing it within the ambit of the GST to make the Indian aviation sector the fastest growing in the world. Speaking at the India Economic Summit of the WEF, he said that if the sector was the beneficiary of a favourable tax regime, there was no reason why India would not emerge as the fastest growing aviation market in the world in the next decade. “If we have to increase connectivity and bring down cost, the biggest item is ATF. So, we want that ATF cost to be reduced and states should reduce sales tax and bring it within GST so that we can claim input tax credit,” Singh said. “If it happens, then ATF prices will come down, fares will come down and the aviation sector will see growth.” He also dwelt on concerns relating to GST and hoped that these glitches will be sorted out over time. “We found that the government was very receptive to our ideas. So, we are discussing with them and hopefully, there will be a solution,” Singh said.