AirAsia India says GST to shave off INR4b from airlines
AirAsia India said Tuesday the new tax regime will leave the aviation industry poorer by about INR4b annually if the govt does not roll back the levy. "On an average, an operator will have to pay an additional INR100m-120m per aircraft in additional levies, which include the 5% duty on plane imports. This will put an additional INR4b tax burden on the airlines that lease out planes," AirAsia India MD and CE Amar Abrol said. But he said the airline has decided not to pass on this additional burden to customers as it expects the govt to rollback the duty. "The problem is that credit set-off of 3% is available only on services and not on purchase of machinery or aircraft imports. Overall, it seems to be a negative impact and the details are being worked out," he said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-07-05/unaligned/airasia-india-says-gst-to-shave-off-inr4b-from-airlines
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AirAsia India says GST to shave off INR4b from airlines
AirAsia India said Tuesday the new tax regime will leave the aviation industry poorer by about INR4b annually if the govt does not roll back the levy. "On an average, an operator will have to pay an additional INR100m-120m per aircraft in additional levies, which include the 5% duty on plane imports. This will put an additional INR4b tax burden on the airlines that lease out planes," AirAsia India MD and CE Amar Abrol said. But he said the airline has decided not to pass on this additional burden to customers as it expects the govt to rollback the duty. "The problem is that credit set-off of 3% is available only on services and not on purchase of machinery or aircraft imports. Overall, it seems to be a negative impact and the details are being worked out," he said. <br/>
