How can the aviation industry in India be improved in terms of taxation policies
Discuss the current state of the aviation industry in India and the measures that can be taken to improve it, particularly with regard to high taxes that affect the growth of the industry.
- Reduce taxes: The government can consider reducing taxes like excise duty, VAT, and service tax on aviation fuel by considering it as a declared good.
- Harmonization of taxes: The government can adopt a uniform tax policy across the country, rather than having a varied tax policy, which will reduce the burden faced by the airlines.
- Lower the airport charges: Airports authority of India (AAI) can consider reducing the airport charges on airline operators which will encourage airlines to operate more flights.
- Encourage more private players: Encouraging more private players in the aviation sector through providing tax incentives will create healthy competition and will lead to more growth in the industry.
- Development of more regional airports: By encouraging the development of more regional airports, remote areas in the country will be better connected with the rest of the country.
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a year ago