Indian airlines burdened by high taxes, low fares

As the Indian civil aviation industry struggles to get back on its feet after Covid lockdowns and travel restrictions, high taxes and low fares are proving to be major obstacles to any recovery.

IndiGo airline chief Ronojoy Dutta said he is working with other industry players and the civil aviation ministry to address the problem of high indirect tax rates. In his Christmas and New Year message to employees, Dutta said: “We pay over 21% of our revenues as indirect taxes to the government. We think it is unconscionable that a critical infrastructure industry such as aviation, with its large multiplier effects in employment, should be taxed at such a high rate.

“We are working with other players in the industry and the civil aviation ministry to address this long-standing problem.”

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