India's Aviation Market: Navigating the Tax Turbulence

The International Air Transport Association (IATA), which represents over 350 airlines including Air India and IndiGo, has voiced concerns over India's complex taxation system. Arguing for clarity, IATA sees clearer tax regulations as vital for realizing the potential of India's rapidly expanding civil aviation sector.

Speaking during a briefing, IATA Director General Willie Walsh noted that foreign airlines facing tax notices isn't a new phenomenon and emphasized that resolving taxation ambiguities is essential for India to harness growth opportunities in aviation. Walsh warned that the current tax structure could stall economic benefits unless addressed.

Moreover, IATA has criticized high airport charges globally and urged for better dialogue between airlines and airports. Walsh remarked on the necessity of cost-effective airport operations and strategic investments, pointing out ongoing disagreements over financing and operational priorities.

(With inputs from agencies.)