Airlines told not to show surcharge, airport fees as taxes
Warning airlines not to show fuel surcharge and airport charges as taxes, government said it would make it mandatory for them to show components like airfares and charges separately and the tax amount paid as nil
By PTI |
NEW DELHI: Warning airlines not to show fuel surcharge and airport charges as taxes, the government on Monday said it would make it mandatory for them to show components like airfares and charges separately and the tax amount paid as nil.
It also warned against any cartelisation move in the industry and asked the airlines not to take collective decisions while fixing air fares.
At a meeting of top officials of all airlines here today, the Civil Aviation Ministry made it clear that they should distinctly indicate the amount payable to them, to the airport operator and show zero tax.
While the airline would get the ticket price and the fuel surcharge, the airport operator has to be paid the Passenger Service Fee and the airport development fee or user development fee, wherever applicable. No taxes are applicable in domestic flights.
The Directorate General of Civil Aviation (DGCA) would soon issue a circular to make it mandatory for the airlines to show all these components of a ticket separately on their websites and advertisements, the airlines were told.
Besides the airline representatives, Civil Aviation Secretary M Madhavan Nambiar, DGCA chief Naseem Zaidi and other senior officials were present at the meeting.
It also warned against any cartelisation move in the industry and asked the airlines not to take collective decisions while fixing air fares.
At a meeting of top officials of all airlines here today, the Civil Aviation Ministry made it clear that they should distinctly indicate the amount payable to them, to the airport operator and show zero tax.
While the airline would get the ticket price and the fuel surcharge, the airport operator has to be paid the Passenger Service Fee and the airport development fee or user development fee, wherever applicable. No taxes are applicable in domestic flights.
The Directorate General of Civil Aviation (DGCA) would soon issue a circular to make it mandatory for the airlines to show all these components of a ticket separately on their websites and advertisements, the airlines were told.
Besides the airline representatives, Civil Aviation Secretary M Madhavan Nambiar, DGCA chief Naseem Zaidi and other senior officials were present at the meeting.
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