Heavy aviation taxes hit industry badly: Goyal
The Indian aviation industry cannot continue with the heavy taxes it is burdened with at present, Jet Airways chairman Naresh Goyal has said. Tushar Srivastava reports.india Updated: Jun 11, 2012 21:11 IST
The Indian aviation industry cannot continue with the heavy taxes it is burdened with at present, Jet Airways chairman Naresh Goyal has said.
“No country in the world except India imposes a service tax on airlines,” Goyal told Hindustan Times on the sidelines of the annual general meeting of the IATA in Beijing.
“Aviation is part of the country’s infrastructure. Indian domestic fares are almost 300% higher as compared to others. Chinese airlines, for example, don’t have fuel taxes. The fares in China are a third of that in India,” Goyal, who owns India’s largest domestic carrier, by market share, said.
He also dropped hints at foreign carriers wooing him with the government on the verge of clearing 49% foreign direct investment (FDI) by foreign carriers in Indian airlines.
“We haven’t spoken to anybody but they (foreign carriers) may approach us,” he said.
Jet Airways, he said, was not considering direct import of ATF as it won’t solve the problems in the absence of logistics, storage and infrastructure.