Thread: Flight taxes in India

For all those who frequently travel via flight..Dont you think that the flight taxes in India are far too high and stop people from travelling more frequently..The aviation companies have done thei bit in bringing the prices down but tax is still a huge hindarance factor..Discuss..

You are completely right on this one. Like if you look then you would see that taxes are some where 50% of the flight charges. I think this is really bad thing and i would say that it would be nice if flight taxes are lowered down.

Besides tax, there is surcharge on fuel also, which all passengers will be charged but will not be shown in the bill in most of the airways in India. Sometimes, the taxes and surcharges overtake the original price of the ticket, which is rather absurd.

I also feel that they should reduce the tax, at least to a reasonably lesser rate. Is anyone listening?

Originally Posted by xwhyz

Besides tax, there is surcharge on fuel also, which all passengers will be charged but will not be shown in the bill in most of the airways in India. Sometimes, the taxes and surcharges overtake the original price of the ticket, which is rather absurd.

I also feel that they should reduce the tax, at least to a reasonably lesser rate. Is anyone listening?

Well I am listening to what you are saying and i think it is right that not only in some places but in majority of the cases we have to pay more taxes then our ticket costs which is a very bad thing.

If you see at the Tax rates you would notice that tax rates are much more then of the ticket costs if you compare then in domestic rates and i think that it is not a good thing at all.

It is not only ont he avaitation category but Indian government have high taxes almost on every thing...

Minister for ending “plight” of airlines over high ATF prices

The time has come for the government to intervene and help the growing civil aviation industry in the wake of skyrocketing prices of aviation turbine fuel (ATF), Civil Aviation Minister Praful Patel said here on Friday. “High prices of jet fuel have dealt a severe blow to the airlines. Air travel is no more a luxury but just another mode of travel. The aviation industry is an important contributor to the economic growth. All States and the Centre should pay urgent attention to the industry,” Mr. Patel told reporters here.
Favouring rationalisation of sales tax, excise and customs duty structure on ATF, he said that at Rs.61,000 a kilo litre, the ATF in India was costlier than in Singapore, where it cost Rs.32,000 a kilo litre. The ATF price constituted 15 to 20 per cent of the total cost of operation of an airline abroad. But in India, it had zoomed to 40 to 45 per cent.

“Acute crisis”

While ATF prices increased six-fold since 2004, airlines did not increase their fares in that proportion, Mr. Patel said adding that the carriers were facing acute crisis and their load factors were dropping.
“I would request Prime Minister Manmohan Singh to intervene and also meet Finance and Petroleum Ministers to take steps for helping the industry. Airlines, the world over, are bleeding and suffering losses due to high cost of jet fuel. For us too, it is a matter of serious concern. The aviation industry needs our support and the government has to find ways and means to help it.”
Andhra Pradesh and Kerala had paid heed to his appeal and lowered taxes to 4 per cent on the ATF, he pointed out.

The Hindu : National : Minister for ending “plight” of airlines over high ATF prices