Airline major IndiGo on Wednesday urged the Centre to reduce central excise on jet fuel to 5 per cent from 11 per cent in the Union Budget FY23, to be tabled in the Parliament on February 1.
According to Ronojoy Dutta, Whole Time Director and Chief Executive Officer, IndiGo, civil aviation provides efficient infrastructure critical for economic growth and employment in the country.
Yet civil aviation pays 21 per cent of its revenues to the government in indirect taxes with very little input credit. It is an unreasonable proposition to expect that the industry should earn a 21 per cent margin just to pay taxes to the government, Dutta said. 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.