FICCI recommends waiver of airlines’ interests and penalties, GST relief

NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) has recommended that the government waives off interests, penalties, delayed charges and accruals to airport operators, in order to rescue the country’s crisis-hit aviation sector. Among other measures recommended by the chamber for the sector are easing of Goods and Services Tax (GST) and other tax structures, declaration of aviation as a “Core Infrastructure Industry” and bringing aviation fuel under the GST regime.

FICCI said India’s aviation industry is facing a crisis of unimaginable proportions due to the impact of the coronavirus pandemic. With prolonged travel restrictions in place around the world, one of the major challenges faced by the industry is a massive plunge in cash reserves as fleets remain grounded for almost a month now. Many airline companies are on the brink of bankruptcy, putting at risk around 30 lakh jobs. “It is likely that banks may be reluctant to extend credit to airlines in the current situation in the absence of guarantees.