Levying GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers, IATA chief Alexandre de Juniac said on Tuesday. He also flagged various concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes and privatisation of airports.
The International Airport Transport Association (IATA) is a grouping of more than 280 airlines. Air India, Jet Airways and Vistara are also members.
Speaking at a conference, de Juniac said goods and services tax (GST) on international air tickets violates International Civil Aviation Organisation (ICAO) norms and also weakens the competitiveness of carriers. The ICAO, part of the UN, is a global aviation body.
The GST rate is 5 per cent and 12 per cent on the economy and business class tickets, respectively. The IATA’s Director General and CEO also said that India’s aviation sector is projected to see 500 million trips “to, from and within” by 2037.
India’s civil aviation sector has recorded 50 months of double-digit growth and it can be “very easily maintain (that) for next 50 months, provided that all nuts and bolts are in place”, Civil Aviation Secretary R N Choubey said.