IATA Against Imposition of Service Tax

Mar 15, 2011, 11:47 IST

At a CII meeting organised on 23 Sept 2010, the International Air Transport Association (IATA) criticised the recent move of the Indian Aviation Ministry to impose 10.3% service

At a CII meeting organised on 23 Sept 2010, the International Air Transport Association (IATA) criticised the recent move of the Indian Aviation Ministry to impose 10.3% service tax on all domestic flights along with economy class travel on international sectors. The Aviation Ministry's move was termed "illegal" by International Civil Aviation Organisation rules. India's reluctance to allow foreign airlines to invest in domestic carriers was also criticised. According to IATA chief the government's decision would further add 236 million to the cost of operating in India which would be detrimental to the Indian aviation industry.

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