IndiGo CEO and Whole Time Director, Ronojoy Dutta, has reiterated the need to bring ATF under GST ambit.
The move will help airlines claim input tax credit that will in turn help offset “increase in cost and make flying viable for airlines and affordable for consumers”.
“We have been in talks with the government ... We believe such measures are needed now more than ever to offset this increase in cost and make flying viable for airlines and affordable for consumers,” Dutta said as per the company statement.
According to him, a rationalisation of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism and job creation.
According to the IndiGo CEO, over the past few weeks, crude oil prices have soared to a 7-year high nearing $140 per barrel, due to the ongoing conflict in Europe. This has resulted in over 50 per cent ATF price hike so far this year.
“This situation adversely impacts us, given that ATF constitutes over 45 per cent of our operational costs,” he added.