India on IATA's 'Wall of Shame' for imposing high service tax

India was on Monday put on the 'Wall of Shame' by the IATA for imposing high service tax on air tickets when aviation sector was growing at a high pace, with the world airlines' body warning the country not to kill the "goose that lays golden eggs".

The government was put on the Wall of Shame at the Annual General Meeting of the International Air Transport Association (IATA) here, along with the European Union Parliament and the governments of the UK, Germany and Austria, for imposing high taxes on air travel.

Asserting that aviation fuelled global trade stimulated economies and restored government budgets, IATA's Director General and CEO Giovanni Bisignani said "don't kill the goose that lays golden eggs... Tax the bankers who created the mess. Their billions of dollars in bonuses should help clean it up."

Asking the UK, German, Austrian and Indian governments to "stop compromising economic growth with aviation taxes," he said these governments "need a textbook on aviation's role as an economic catalyst. The first chapter is entitled 'Basta (enough) to More Taxation'."

"Taxing aviation does not pay. The Dutch government repealed a USD 412 million departure tax because it cost the Dutch economy USD 1.6 billion. Similarly, the Irish Government is planning to cancel its USD 165 million Travel Tax because it has cost the economy USD 494 million and 3,000 jobs," Bisignani said at the IATA's 67th Annual General Meeting here. (PTI)