The International Air Transport Association (IATA) on Monday castigated India for taxing international tickets, even as it asked governments to facilitate the growth of worldwide connectivity by avoiding creeping re-regulation, maintaining the integrity of global standards and addressing a capacity crisis.
“We must take governments to task. It is unacceptable that global standards are being ignored by the very governments that created them,” said IATA Director General and CEO Alexandre de Juniac. Asserting that India was taxing international tickets in contravention of the resolutions of the UN body International Civil Aviation Organisation (ICAO), Mr. de Juniac said India helped develop ICAO resolutions prohibiting tax on international tickets.
“Yet it persists in taxing international travel,” he said, apparently referring to the imposition of Goods and Services Tax (GST) and enhancement of rates on international air tickets, especially business class. The tax covers airline products and services including tickets, ancillary, change, refund and other products and fees.
Capacity crisis
IATA also warned that governments need to urgently tackle a capacity crisis facing airports as demand for international travel grows. But they should be cautious about private sector involvement. With passenger levels projected to nearly double to 7.8 billion by 2036, infrastructure such as airports and air traffic control systems were not keeping pace, the IATA said.
