Airlines industry already chronically ill; budget needs to give tax break: IndiGo CEO

As third wave has airlines flying into deep-red, private carrier the IndiGo chief has asked the government to cut taxes on jetfuel while hoping for relief in the upcoming budget.

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The civil aviation currently pays 21% of its revenues to the government in indirect taxes without any or rather very little input credit highlighted IndiGo CEO Ronojoy Dutta.

“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.

IndiGo CEO Ronojoy also urged finance minister Nirmala Sitharaman to bring down excise duty on jet fuel from the current 11 to 5%. Fuel makes up 25%-40% of an airline’s operating cost.

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.