Airlines honchos oppose hike in service tax in meeting with Ravi

In a meeting with the civil aviation minister Vayalar Ravi,the FIA apprised him of the problems of the sector.

Concerned over the Budget proposal of hiking service tax on air travel,domestic airlines honchos said the move will pull down their yields. Opposing the imposition of 10 per cent service tax in business class on domestic flights and in business and first classes on international flights,Federation of Indian Airlines (FIA) said that the hike would affect the airlines adversely.

In a meeting with the civil aviation minister Vayalar Ravi on Friday,the FIA apprised him of the problems of the sector. Apart from the service tax issue,the airlines registered their concerns about the growing fuel prices and high airport charges.

The airlines were represented by the FIA chairman and Kingfisher honcho Vijay Mallya,Jet Airways chairman Naresh Goyal,IndiGo president Aditya Ghosh and Air India CMD Arvind Jadhav.

The airlines body also put forward the issue of high airport charges being imposed,especially at the private airports like Delhi,Mumbai,Bangalore and Hyderabad. The minister assured that he would look into the matter,said sources. With crude prices hovering over $110 a barrel and ATF prices rising consequently,FIA has been asking the government to bring ATF under declared goods category so that a uniform sales tax of four per cent is imposed on it across India. Apparel retailers to strike.

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