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IATA asks for lower GST rates

DELHI: International Air Transport Association (IATA) is seeking “abated” Goods and Service (GST) tax rates on flight tickets. IATA Chief Alexandre de Juniac said “the GST regime needs to adhere to international standards and principles.”

“We have called for a zero-rating for international flights when the GST comes into effect next April. This seems unlikely. To limit its damage to the sector’s competitiveness, we would at least hope for abatement in the rate,” de Juniac told PTI.

He said the airlines in India faced “an onerous tax burden, including the imposition of service tax to services rendered abroad, including those for overflight charges, global distribution systems and international tickets.” This, he said, was “in contravention of international principles established by governments” through the UN body International Civil Aviation Organisation (ICAO).

The IATA Director General and CEO met top Indian Government officials and Indian carriers during his two-day visit to India. He also expressed concerns regarding high aviation furl tax rates, service tax on air tickets and high airport charges.


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