Isra-Mart srl: India on IATA''s ''Wall of Shame'' for imposing high service tax

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Charging EU Parliament with "ignoring international law" and deciding to impose carbon emission trading scheme to charge airlines, the IATA chief said "also on the Wall is the hit parade of government tax bandits." While the UK has imposed "the highest aviation tax in the world" of USD 4.5 billion, Germany imposed a USD 1.3 billion departure tax followed by Austria's USD 119 million tax and "India for the USD 450 million impact on aviation of its Service Tax in complete contravention of ICAO rules," Bisignani said. The slide show accompanying Bisignani's speech had the pictures of top leaders of these countries, including Prime Minister Manmohan Singh when the IATA chief spoke about taxation in India. Naresh Goyal and Vijay Mallya, chiefs of Jet Airways and Kingfisher Airlines, and Air India officials were present at the conference that was inaugurated by Singapore�s Deputy Prime Minister Tharman Shanmugaratnam. This is the second time that India has been put on this wall - the earlier occasion being in June 2009 for steep hike in charges imposed on airlines by private-led Delhi and Mumbai airport developers. However, Bisignani had a word of praise too for India. Referring to the robust growth in India and China, he said the two countries should take up the global leadership role. "In place of our traditional leaders, I am convinced that China and India will soon become the driving force of aviation in the century. They will grow aviation stronger through change, replacing artificial barriers with commercial opportunities." He also said India was "developing Delhi as a regional hub" for airlines.