IATA chief to urge removal of service tax on air travel

IATA chief to urge removal of service tax on air travel   Giovanni Bisignani, Director General of International Air Transport Association’s (Iata) is going to urge the government to remove service tax imposed on air travel, so that it becomes more attractive to the people.

Talking to media he said, “I am meeting the finance secretary tomorrow (Friday). The service tax on air tickets by the government is illegal. It is embarrassing for India which is a leading member of the International Civil Aviation Organisation (ICAO) and a signatory to Chicago convention.”

He clarified that service tax was not an IATA issue, but advised that the finance ministry to look into it so that the beleaguered aviation sector can get some relief. He also said that they were not looking at some kind of bail out being given but some steps should be taken so that the aviation sector is helped out.

Bisignani has already met planning commission deputy chairman Montek Singh Ahluwalia and tourism minister Kumari Selja. He discussed issue related to infrastructure with them.

IATA has also suggested that foreign players should be allowed to buy stake in Indian aviation companies and reiterated that FDI was not for short-term growth.