IndiGo CEO Ronojoy Dutta urges FM to cut excise duty on jet fuel from 11 to 5%

IndiGo CEO Ronojoy Dutta on Wednesday urged finance minister Nirmala Sitharaman to bring down excise duty on jet fuel from the current 11 to 5 per cent. Dutta stated that the aviation turbine fuel (ATF) should be brought under the GST, and that the customs duties on repair parts should be eliminated.

“Civil aviation provides efficient infrastructure, critical for economic growth and employment in our country. Yet civil aviation pays 21 per cent of its revenues to the government in indirect taxes with very little input credit,” Dutta said in a statement.

“It is an unreasonable proposition to expect that the industry should earn a 21 per cent margin just to pay taxes to the Government. This unreasonable proposition is resulting in an industry that is chronically ill and is unable to live up to its true potential of boosting commerce and employment,” he added.

Thus, Dutta requested the finance ministry to take “immediate action” to address the “long festering problem.”

“Central excise taxes on fuel should be reduced from 11 to 5 per cent, ATF should be brought under the GST, custom duties on repair parts should be eliminated. A rationalisation of taxes will result in explosive growth for aviation, which will have multiplier effects throughout the economy, stimulating commerce and employment and integrating the different regions of our diverse country closer together,” he noted.

In the September-ended quarter of FY22, IndiGo had posted a net loss of Rs 1,435.6 crore as against a loss of Rs 1,194.80 crore in the corresponding quarter last year.

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