Aviation ministry seeks tax waiver on passenger service fee

NEW DELHI: The civil aviation ministry has asked the finance ministry to waive income tax on the money earned though the passenger services fee (PSF), which is spent on security at all airports.

If implemented, the move will dent the government’s direct tax collection by a tad.

“The income tax department charges tax (in the highest slab) on the fee that was earlier collected by airports. We have made a request to the finance ministry to exempt it from tax, as it is collected by us but managed by a trust,” said an aviation ministry official, refusing to be identified.