India is listed on “wall of Shame” by IATA due to high tax

BY:Vikash Kumar Singh:
Source:WWW.Goindocal.com

New Delhi.June,8:India is now stationed on the faring list ‘Wall of Shame’ by the International Air Transport Association(IATA) for surging rate of service tax on air tickets when aviation sector is growing at a higher pace, with the world airlines’ body warns India not to kill the “goose that lays golden eggs”.

Addressing the aviation supported global trade stimulated economies and restored government budgets, Giovanni Bisignani Director General and CEO of IATA said “don’t kill the goose that lays golden eggs... Tax the bankers who created the mess. Their billions of dollars in bonuses should help clean it up.”

IATA, during its 67th annual general meeting listed the European Union parliament and the governments of the Germany, UK and Austria, on the Wall for imposing high taxes on air travel.

Asking the German, Austrian UK, and Indian governments to “stop compromising economic growth with aviation taxes,” he said these governments “need a textbook on aviation’s role as an economic catalyst.

The first chapter is entitled ‘Basta (enough) to More Taxation’.”

“Taxing aviation does not pay. The Dutch government repealed a USD 412 million departure tax because it cost the Dutch economy USD 1.6 billion. Similarly, the Irish Government is planning to cancel its USD 165 million Travel Tax because it has cost the economy USD 494 million and 3,000 jobs,” Bisignani said. Charging European Union Parliament with “ignoring international law”and deciding to impose carbon emission trading scheme to charge airlines, the IATA chief said “also on the Wall is the hit parade of government tax bandits.”

While the UK has forced “the highest aviation tax in the world” of USD 4.5 billion, Germany imposed a USD 1.3 billion departure tax followed by Austria’s USD 119 million tax and “India for the USD 450 million impact on aviation of its Service Tax in complete contravention of ICAO rules,” Bisignani said.