Airline major IndiGo on Wednesday urged the Centre to reduce central excise on jet fuel to 5 per cent from 11 per cent in the Union Budget FY23, to be tabled in the Parliament on February 1.
According to Ronojoy Dutta, Whole Time Director and Chief Executive Officer, IndiGo, civil aviation provides efficient infrastructure critical for economic growth and employment in the country.
“Yet civil aviation pays 21 per cent of its revenues to the government in indirect taxes with very little input credit. It is an unreasonable proposition to expect that the industry should earn a 21 per cent margin just to pay taxes to the government,” 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 added.
Besides, Dutta requested the Ministry of Finance to take immediate action to address the problems faced by the sector.
“Central excise taxes on fuel should be reduced from 11 per cent to 5 per cent, ATF should be brought under GST, Customs duty on repair parts should be eliminated.
“A rationalization of taxes will result in explosive growth for aviation, which will have multiplier effects throughout the economy, stimulating commerce and employment and integrating the different regions of our diverse country closer together,” Dutta said.
