Travel companies seek tax relief on jet fuel
The travel industry intends to answer industry demands to lower taxes on jet fuel.
'We look forward to some fundamental changes that will give the travel and tourism market a big boost. There is a pressing need to review taxes on air travel, which is probably the most heavily-taxed product in the country, where the tax component of airfare often exceeds the underlying price of that ticket,' says Rakshit Desai, managing director for India of travel management firm FCm Travel Solutions.
Sharat Dhall, president of travel portal Yatra.com, noted issues such as the relaxing of taxes on aviation turbine fuel (ATF) to 'boost cheaper air travel'.
MakeMyTrip's co-founder and CEO Rajesh Magow also suggested 100% foreign direct investment (FDI) in the case of airlines. As the operating costs were 'disproportionately high' for airlines, the government should look to solve this problem by lowering the fuel surcharge and justifying airport charges.