India’s tax on international air tickets against ICAO resolutions: IATA

India's tax on international air tickets against ICAO resolutions: IATA
International Air Transport Association (IATA). (Photo: Twitter/@IATA)

New Delhi:  Global airlines association IATA on Monday said that the Indian government’s tax on international tickets is in contravention of International Civil Aviation Organization (ICAO) resolutions that the country has helped to develop.

According to the International Air Transport Association (IATA) Director General and CEO Alexandre de Juniac, India, which has helped to develop ICAO resolutions’ prohibiting tax on international tickets, is now taxing them

“India helped develop ICAO resolutions prohibiting tax (27) on international tickets. Yet it persists in taxing international travel,” he said in the “Director General’s Report on the Air Transport Industry” at the IATA’s 74th annual general meeting and World Air Transport Summit being held in Sydney.

Currently, Goods and Services Tax (GST) is levied on international tickets.

IATA, at the summit, also said that it expects for airlines to achieve a collective net profit of $33.8 billion in 2018.

“This is a solid performance despite rising costs, primarily fuel and labor, but also the upturn in the interest rate cycle,” IATA said in a separate statement.

“These rising costs are the main driver behind the downward revision from the previous forecast of $38.4 billion in December 2017.”

In 2017, airlines globally earned a record $38 billion.

IATA represents some 290 airlines comprising 82 per cent of global air traffic.