Tax issues may force airlines to exit India: IATA DG

Iata director general Willie Walsh expressed concerns over India's tax system, warning that its complexities could lead to global airlines withdrawing from the market. \r

Recent investigations by the Directorate General of GST Intelligence (DGGI) into alleged tax evasion by foreign airlines have intensified these concerns. Walsh emphasized the risk of double taxation and the complexity of tax rules, which may drive airlines away. Foreign carriers dominate India's international air traffic, with Emirates leading the pack. The potential negative impact on profitability and network services due to tax complexities is worrisome. \r

Despite significant international traffic, the outcome remains uncertain, with Walsh highlighting the perpetual complexity of India's tax regime and its potential repercussions on the aviation industry.