Budget wishlist: Aviation sector seeks tax rationalisation, excise cut

The Indian aviation sector has witnessed a roller-coaster ride over the last year with the air traffic reaching almost 90 percent of pre-COVID levels and then with the onset of the third wave of COVID the levels dipping to nearly 40 percent of pre-COVID numbers.

IndiGo, the largest airline in India is hopeful of cutting taxes. The CEO Ronojoy Dutta says that indirect taxes amounting to 21 percent of an airline's revenues is an unreasonable proposition and is resulting in a chronically ill industry.

The airline has requested the finance ministry for immediate tax rationalisation, cut in central excise on fuel to 5 percent from 11 percent, elimination of custom duties on repaired parts and has reiterated the long pending request to bring ATF under GST.