Service Tax - India in IATA's Wall of Shame - killing goose laying golden eggs!
THE International Air Transport Association (IATA), has yesterday placed India on its “Wall of Shame”, for its excessive Service Tax. IATA's Director-General and CEO, Giovannio Bisignani in his address to the 67th Annual General Meeting in Singapore yesterday, said, “Taxing aviation does not pay. The Dutch repealed a USD 412 million departure tax because it cost the economy USD 1.6 billion. And the Irish plan to cancel their USD 165 million Travel Tax because it cost USD 594 million and 3,000 jobs. The lesson for governments is simple: don't kill the goose that lays golden eggs.”
“Aviation fuels global trade that is stimulating economies and restoring government budgets. Tax the bankers. They created the mess. Their billions in bonuses should help to clean it up,” he added
The DG usually embarrasses governments with facts and figures and has perfected the ‘art of shouting politely', though he calls the ‘WALL' a hit parade of ‘government tax bandits'.